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In the present unstable business environment, supply chains are considerably impacted by disruptions, necessitating the implementation of resilience strategies. These strategies, however, pose significant financial challenges for companies. Therefore, financing is essential in developing resilient supply chain networks. In addition to utilizing existing capital, options such as bank loans and trade credit can be employed to alleviate the financial burden and enhance working capital. The present scholarship has failed to address the issue of financial strain resulting from the adoption of resilience strategies. Additionally, the significance of trade credit and repayment scheduling in all levels of the supply chain network also left under-researched. To fill this research gap, this paper proposes a three-tiered supply chain network consisting of main/support suppliers, factories, and distribution centers under uncertain demand conditions. The network is developed to effectively handle demand uncertainty and achieve optimal net present value and demand estimation. To solve the bi-objective model of the study, a preemptive fuzzy ideal programming approach accompanied by the implementation of the CPLEX solver is utilized. The findings lend support to the importance of securing financial support for support suppliers and establishing effective trade credit agreements across all levels of the supply chain. [ABSTRACT FROM AUTHOR]

Objective: This research seeks to investigate whether credit trade can decrease cost stickness (as a signal of opportunistic behavior of manager) or not? and whether agency problem, product market competition and customer concentration can moderate the effect of trade credit on cost stickness or not?Methods: Trade credit is measured by two ratios: accounts payable to cost of good sold ratio and accounts payable to sale ratio. Cost stickness is measures by selling, general and administrative expense stickness (SGA) and cost of goods sold stickness(CGS). The statistical population consists of the firms listed in Tehran Stock Exchange between 2014 to 2020.Results: Credit trade affects negatively on cost stickiness and this effect is prevalent in the firms with more agency problems and active in less competitive market.Conclusion: According to obtained findings, using credit trade leads to decrease the opportunistic behavior of managers and cost stickiness and so, it is a monitoring tool that can be used in evaluating performance and expense efficiency of firms. Additionally, in the firms suffer from more agency problems or active in less competitive market, trade credit decreases cost stickness more because suppliers monitor these firms more than others in order to maintain their interest.

Understanding cost behavior in the case of sale changes and examining the factors effective on asymmetric cost behavior lead to the greater awareness of managers' motivations and decisions. The main purpose of this study is to investigate the relationship between trade credit and corporate cost stickiness as well as the moderating effect of agency problem and customer concentration on the relationship. The sample consists of 161 firms listed in Tehran Stock Exchange in a 7 years period from 2014 to 2020. Results show that trade credit as an external governance mechanism has a significant negative relation with cost stickiness. In addition, findings show that the agency problem strengthens the relationship between trade credit and corporate cost stickiness; however, customer concentration weakens that relationship. Our study contributes the cost management literature through identifying one of the potential factors that can reduce cost stickiness in companies.

One of the most important financial and managerial decisions of companies is determining the optimal amount of inventory needed for each period. The inventory of goods and commercial credit can be considered as one of the important items in supply chain management and as a source of short-term finance, respectively, which can be of great benefit to organizations if they are managed prudently. We investigated the effect of product inventory management and commercial credit on the stability of capital structure by using a dynamic combined data method with a generalized torque approach in 101 firms, listed in the Tehran Stock Exchange between 2006 and 2019. The results indicate that with increasing efficiency of inventory management, the stability of capital structure decreases based on the book and market leverage. In addition, based on the book leverage, when business credit goes up, the stability of the capital structure decreases, and based on the market leverage, with the increase of commercial credit, the stability of the capital structure reduces.

Objective: One of the short-term financing methods that have received less attention in domestic research is the use of trade credit in financing. In this study, the impacts of some financial variables in firms on the supply of and demand for trade credit have been examined. Method: The research sample includes 147 companies listed in the Tehran Stock Exchange in the period 2007-2017. To estimate the proposed model, panel data method and control approach of the effects of years and industries have been used as static approach, and to take into account the dynamics of supply and demand for trade credit, the dynamic panel data method with generalized moment method (GMM) has been used as complementary tests. Results: Findings showed that as firm's size and age increase, so does the supply and demand for trade credit. Also, it was shown that firm's liquidity inversely affects the supply and demand for trade credit. However, the results do not provide sufficient evidence on the significant impact of financial constraints on supply and demand for trade credit. The findings of the supplementary tests confirm the initial results of the study. Conclusion: Identifying the factors influencing the trade credit can help to properly manage trade credit and make optimal use of it to improve risk management and increase firm value.

Objective: Capital market imperfections make a linkage between the firms' leverage and its value. In other words, there is a level of leverage at which the entity achieves its maximum value. It is generally assumed that the actual leverage is close to the optimal (target) leverage and when firms deviate from the optimal leverage or their optimal leverage changes, the actual leverage ratio is rapidly approaching the optimal leverage. However, several factors such as financing frictions in the capital market, macroeconomic shocks, as well as financial constraints and agency costs slow down the adjustment speed. Among the theories related to firms' leverage (including trade-off, pecking order, agency and market timing theory), the concept of target (optimal) leverage has a key role in trade-off theory. According to trade-off theory, optimal leverage is achieved via balancing the tax shield of debts and bankruptcy costs, and if adjusting the leverage does not impose cost on a firm; the company will minimize any deviation from the target leverage rapidly. The dynamic version of trade-off theory highlights the role of adjustment costs in firms' financing decisions. In this version, if there is a deviation between the actual and the optimal leverage, firms balance the benefits and costs of adjustment. If the adjustment costs are high, the firm may not adjust the leverage. On the other hand, using trade credit is one of the ways to firms' short-term financing. This research investigates the effect of trade credit on firms' actual leverage adjustment speed to achieve the target (optimal) leverage. Methods: This research is applied. In terms of research purpose, it is analytical, quasiexperimental and correlational, and in terms of time dimension, it is retrospective and post-event. The research sample includes 143 firms listed in Tehran Stock Exchange (TSE) during the period 2005-2019. In order to determine the type of firms' leverage (over-leveraged or underleveraged), our static models are estimated using panel data approach and fixed effect modes. In addition, to test the research hypotheses, we use dynamic models using the difference generalized method of moment's estimator (Difference-GMM), and the system generalized method of moments estimator (System-GMM) is used in our robustness tests. Results: Overall, the results show that in over-leveraged firms, the leverage adjustment speed is faster for those firms which have lower trade credit than other firms. Furthermore, our results indicate that in under-leveraged firms, the leverage adjustment speed is slower for those firms which have lower trade credit. Findings from robust tests that confirm our initial results are consistent with trade-off theory. Conclusion: Findings show that in sub-sample of firms where debts are more (less) than the optimal amount, more use of trade credit and reducing its capacity, reduces (increases) the speed of correcting the actual leverage to achieve the target leverage. In addition, our findings indicate that in sub-sample of firms where debts are less than the optimal amount, more use of trade credit and reducing its capacity increases the speed of correcting the actual leverage to achieve the target leverage. [ABSTRACT FROM AUTHOR]

Trade credit is one of the most important resources for short term financing. Several different factors affect trade credit one of the most important of which is accounting quality. Therefore, this paper examines the relation between a firm’s amount of trade credit and its accounting quality. Earnings smoothness, conservatism and earnings management are independent variables being used to proxy for accounting quality, and the dependent variable is trade credit. Earning to operating cash flow ration and discretionary accruals are criteria for earning smoothness and earning management respectively. Discretionary accruals are adjusted by Jones model (1995) and conservatism is calculated by Khan& Watts model (2009). Also, trade credit is calculated using payable accruals to total assets ratio. The sample consists of 127 firms listed in Tehran stock exchange from 2008 to 2013. The ordinary least square method is used to test hypotheses. Results show that there is no significant relation between amount of trade credit and earnings smoothness as well as conservatism while there is a significant negative relation between the amount of trade credit and earnings management. In other words, increasing in earnings management decreases trade credit.

Monetary policy is part of the economic policies of the country that, through its national monetary authorities working on a framework to coordinate, with other economic policies, the money supply is controlled so that, in accordance with the objectives of the present study the effect of monetary policy on the relationship between accounting conservatism and commercial credit during the years 1387 to 1393 is concerned. For this purpose, a sample of 70 companies listed on the Tehran Stock Exchange and variable monetary policy for the time series data is used. In this study, using panel data regression in the software Eviews 9 was used. The results of data analysis and hypothesis testing shows that the relationship between accounting conservatism and there is a significant trade credit. In addition, the findings suggest that monetary policy will weaken the impact of accounting conservatism on trade credit. [ABSTRACT FROM AUTHOR]

Empirical studies of capital structure are fraught with difficulties. As mentioned by Harris and Raviv (1991), the interpretation of results of these studies should consider the difficulties involved in measuring both leverage and the explanatory variables. In other words, resulting from empirical studies of capital structure is "definitional-dependent of leverage" and on the other hand, may be affected by the imperfect measurement of the study made by researcher. In this study, ten measures have been used to define financial leverage for the first time (in Iran). The results show firstly, some firm characteristics are associated with financial leverage. Level of leverage is negatively correlated with profitability and growth opportunities, and positively related to size variable, but tangibility is not related to leverage; secondly, the results are affected by definition of leverage. In other words, the results of the first part are affected by ten measures of financial leverage measurement. Especially, the decompositional analysis shows current debt and its components have an important effect on the results of the study. This finding challenges traditional measurements of leverage.