Research On The Correlation Between Trade Credit And Business Performance Of Manufacturing Listed Companies

Trade credit comes from the credit sale and purchase in the merchandise trade.Spontaneity and flexibility are the main characteristics of Trade credit,which is widely used due to its two characteristics.Through reading the previous literature,it is found that the early research on Trade credit is mainly carried out from the perspective of Trade credit financing,and the reasons for the prevalence of Trade credit are analyzed.Due to historical reasons,the research on Trade credit in China started late,and most of the research is qualitative research,mainly focusing on the influencing factors of Trade credit.At the same time,rare from the supply and demand of Trade credit point of view.This paper divides Trade credit into two parts: business trust and commercial credit,and studies the correlation between business trust and corporate performance respectively from supply and demand.At the same time,enterprise performance indicators are also different from the previous one-size-fits-all model.Instead of simply using the return on assets index to measure,11 enterprise financial indicators are selected,and factor analysis method is used to synthesize the 11 financial indicators.Finally,a final index is obtained to measure enterprise performance.This article selects two kinds of manufacturing listed companies from 2013 to 2017 financial data,through descriptive statistics,correlation analysis and panel data model PAR,respectively examined traditional manufacturing Trade credit correlation with corporate performance of listed companies,and high-tech manufacturing Trade credit of listed companies and corporate performance relationship.The empirical results show that there is a significant relationship between Trade credit and corporate performance in traditional manufacturing listed companies.There is a negative correlation between commercial credit and corporate performance,and a positive correlation between business trust and corporate performance.However,for the listed companies of high-tech manufacturing industry,there is a negative correlation between commercial credit and enterprise performance,while business trust has nothing to do with enterprise performance.Finally,based on the empirical results,this paper puts forward relevant Suggestions from the perspectives of enterprises,governments and financial institutions.Enterprises should improve the turnover rate while giving full play to the positive effect of Trade credit,so as to weaken the restriction of adverse factors of business trust on the development of enterprises.Government Angle respect should advance the construction of credit system actively.In terms of financial institutions,it is necessary to continuously enhance the support and guidance for Trade credit and business innovation,and give play to the positive influence of Trade credit loans on the business performance of companies.