Research On The Influence Of Managerial Ability On Trade Credit

Trade credit is a short-term credit lending behavior that results from the time difference between a company's goods or services transactions and its capital delivery.It involves the interaction of "upstream suppliers-enterprises" and"enterprise-downstream customers" in the supply chain.Relevant data show that although the level of trade credit financing of listed companies has remained stable in recent years,the level of trade credit supply has been increasing year by year.Trade credit is more and more widely used in daily business activities.As an important part of the company's working capital decision and corporate strategic decision,trade credit decision must also be influenced by managerial ability.In reality,trade credit financing represents the backward credit of the enterprise in the trading session of"upstream supplier-enterprise" in the supply chain,while the trade credit supply represents the forward credit of the enterprise in the trading session of "enterprise-downstream customers" in the supply chain.They belong to the opposite credit mechanism.It's necessary to study the influence of management on trade credit from the perspective of managerial ability that be in different role situations such as"forward" trading session and "backward" trading session in the supply chain.In addition,chinese special institutional environment has created a natural advantage for state-owned enterprises than non-state-owned enterprises.Changes in the external macro environment may also affect the level of trade credit financing and supply levels.Therefore,it's necessary and meaningful to study the differences in the influence of managerial ability on trade credit among enterprises with different property rights,and to consider the adjustment effect of environmental uncertainty in the relationship between managerial ability and trade credit.This thesis takes the data of a non-financial listed company in Shanghai and Shenzhen from 2012 to 2017 as a research sample,uses the DEA-Tobit two-stage model to measure managerial ability,and uses OLS regression to test the influence of the managerial ability on the "forward" and "backward" levels of trade credit,and further investigates the regulating role of property right nature and environmental uncertainty.The empirical research results show that:(1)there is a significant positive correlation between managerial ability and trade credit financing,and there is a significant negative correlation between managerial ability and trade credit supply;(2)there are differences in the influence of managerial ability on trade credit in companies with different property rights,and compared with state-owned enterprises,the positive correlation between management ability and commercial credit financing,and the negative correlation between management ability and commercial credit supply are more significant in non-state-owned enterprises;(3)environmental uncertainty promotes the positive correlation between managerial ability and trade credit financing,and environmental uncertainty promotes the negative correlation between managerial ability and trade credit supply.The research framework of this thesis includes the following six parts:The first part is an introduction.This part expounds the background of the topic,the significance of the research and the definition of related concepts.At the same time,it describes the research content and the overall framework of the thesis,and summarizes the possible innovation points in this thesis.This part is mainly to pave the way for subsequent theoretical and empirical research.The second part is the literature review and commentary.This part reviews the research on managerial ability,trade credit and environmental uncertainty,followed by literature review and inspiration.The third part is the theoretical basis and research hypothesis.This part analyzes and summarizes the high ladder team theory,information asymmetry theory and resource dependence theory,and combines the research results of other scholars to propose the hypothesis of this thesis.The fourth part is the research design.This part is the key part of this thesis.It mainly includes the measurement methods of various variables involved in multiple regression,the construction of multiple regression models based on research hypotheses,sample selection and data sources.The fifth part is the empirical test and the result analysis.This part mainly uses the market data of the sample company to conduct a variety of empirical tests,and uses the results of empirical tests to prove the correctness of the hypothesis.We conduct descriptive statistical analysis and correlation analysis of the sample data.Then,the research hypotheses are verified by multiple regression analysis.We perform robustness tests in the end.The sixth part includes the research conclusions,policy recommendations,research shortcomings and prospects.Firstly,the conclusions are summarized which based on the results of empirical research.Secondly,the policy recommendations are put forward,and the shortcomings of this thesis are summarized.Finally,the future research directions are prospected.The possible innovations and contributions of this thesis are mainly reflected in the two aspects of theory and practice:In theory,this thesis innovatively considers the different roles of management in the "forward credit" and "backward credit" in the supply chain to study the influences of managerial ability on trade credit.It has enriched the relevant research on the factors affecting trade credit.And it considers the moderating effects of property right nature and environmental uncertainty on the relationship between managerial ability and trade credit from the micro and macro directions.It is helpful to expand the research perspective on trade credit.In practice,the research is helpful to understand the role of managerial ability in corporate trade credit decision'n-making,encourages the government to guide enterprises to establish a fair and effective manager selection mechanism,and guide investors to make reasonable considerations of managerial ability.And it also helpful to remind management to strengthen their own construction to create more value for the company.