The Passivity Of Trade Credit And The Influence Factors

Trade credit is a kind of very important behavior in buying and selling goods between two enterprises, getting and providing trade credit have a huge impact on enterprise management strategy. what effects did the trade credit bring to the enterprise, most scholars have recognized the positive effect and neglect its passive effect. However, in the real word, the crisis that caused by the passive effect cropped up frequently. To treat the problems existing in the trade credit in right way, to explore the negative effect factors in the trade credit, that a crucial thing in using trade credit. So this article selects the passive of trade credit to start the research. In the influence factors of trade credit, on the one hand, the exsting research shows that the production competitive power have a huge impact on trade credit; on the other hand, the differences between the ownership of different nature of enterprise is an unavoidable topic in our country. So what effect will the both of them make for trade credit? what a pity, the scholars have not made a detailed study for it.For the above all, this article discusses the relationship between the production competitive power, the nature of the ownership and the passivity of trade credit.The methodology which the study includes theoretical analysis and empirical research.On the basis of literature review, both related theories and concept definition are analyzed,then the hypothesis are put forward. Comprehensive empirical tests present persuasive evidences on the hypotheses, by using a data set of listed Chinese companies.Finally, the robust test verified the conclusion.First,the study empirically examines whether the passivity features are in the trade credit. Refer to the existing literature, we use the relationship between the acquisition of trade credit and the supply of trade credit to measure the passivity features of trade credit, The results indicate, there is a significant characteristics of passivity in the trade credit. Secondly,we examine the relationship between and among the production competitive power, ownership nature and the passivity features of trade credit. The results indicate, strong product competitiveness, state-owned enterprises access more trade credit and the passive feature is more obvious. Finally, the study empirically examines whether the substitution relationship exists or not in the production competitive power and ownership nature. The results indicate, the substitution relationship exists in the production competitive power and ownership nature.The conclusions indicate that the passivity features exists in the trade credit, that restricts the enterprise development. To solve the negative effects what the passive features bought, in this paper, we put suggestions from two aspects of macroscopic and microscopic.The suggestions is that: need to constantly improve the commercial credit laws and regulations, promote the virtuous cycle of trade credit, create a fair and reasonable financing environment. For the enterprise itself, enterprises should constantly improve the management level and product competitiveness, and improve enterprise's financing ability;on the other hand, enterprises Should guard against the problem brought by trade credit, adjusting the financial resources reasonably and taking measures properly.