How judicial efficiency impacts trade credit and doubtful receivables
Bibliographic Data
| ID | 21586397 |
|---|---|
| Authors | Inmaculada Aguiar Díaz (0000-0002-2809-2520, Universidad de Las Palmas de Gran Canaria), Ewelina Mruk (Universidad de Las Palmas de Gran Canaria), María Victoria Ruiz Mallorquí (0000-0002-9179-9342, Universidad de Las Palmas de Gran Canaria, corresponding author) |
| Year | 2024 |
| Volume | 57 |
| Issue | 1-2 |
| Pages | 63-91 |
| Publication date | 2024-04-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | European Journal of Law and Economics (JOURNAL) |
| Journal identifiers | ISSN: 0929-1261 • E-ISSN: 1572-9990 |
| Publisher | Springer Science and Business Media LLC (PUBLISHER) |
| DOI | 10.1007/s10657-024-09793-0 |
| OpenAlex | W4392193306 |
| Language | EN |
| References cited | 72 |
Judicial efficiency has been widely identified as a factor that has an impact on credit markets and firms’ financial decisions. In this paper, we study the relationship between judicial efficiency and trade credit granted by firms to their customers, as well as how the judicial system influences the proportion of those credits that are deemed ‘doubtful’. We test our assumption by analysing a sample of 1526 listed, ‘non-financial’ firms located in countries in the eurozone, during the period 2011–2021. The proxies of judicial efficiency are the length of judicial proceedings and rule of law, obtained from the World Bank’s ‘Doing Business’ and the World Bank Governance Indicators (WGI) databases, respectively. The empirical findings confirm our hypotheses that efficient justice allows for increased supplier confidence when extending financing to their customers and reduces doubtful trade credit
Business · Commercial law · Corporate governance · Economics · Political science · Trade Credit · Corporate Finance and Governance · Firm Innovation and Growth · Law · Working Capital and Financial Performance · Finance
Firms, Contracts, and Financial Structure
Trade Credit
Socio-cultural factors and entrepreneurial activity
Foundations of Incomplete Contracts
Some Tests of Specification for Panel Data
Another look at the instrumental variable estimation of error-components models
Initial conditions and moment restrictions in dynamic panel data models
Specification Tests in Econometrics
Judicial efficiency and loan performance
The Worldwide Governance Indicators
Coordination, Commitment, and Enforcement
The Costs and Benefits of Ownership
Credit Market Disruptions and Liquidity Spillover Effects in the Supply Chain
Law and Finance
Credit Cycles
Courts
| Highly cited | No |
|---|