Abstract

MANAGEMENT OF COMMERCIAL CREDIT GRANTED AND EARNED AND ITS ROLE IN MARKET VALUE APPLIED RESEARCH FOR A SAMPLE OF COMPANIES LISTED ON THE IRAQ STOCK EXCHANGE

Prof. Dr. Abdul Salam Said gesture, Ibraheem abdulh

Volume: 10 Issue: 1 2020

Abstract:

This research comes in the context of knowing the dialectic of the relationship between commercial credit granted and earned and its impact on the market value of companies, which gives the management of companies the freedom to make the appropriate financial decision in the aspects of finance (short-term) and investment (short-term) The above three research for (33) companies listed in the Iraqi market for securities and four sectors (industrial, agricultural, services, tourism and hotels) and for five years from (2013-2017) based on a number of statistical methods are recognized and innovative research service, has Policies were discussed Credit approved by companies (risk, moderate, conservative) for the credit granted and earned to access the nine alternatives (conservative - conservative, moderate - conservative, risk - conservative, conservative - moderate, moderate - moderate, risk - moderate conservative, risk - moderate And stand on the level of efficiency of the departments of those companies (high - high, moderate - high, low - high, high - moderate, moderate - moderate, low - moderate, high - low, moderate - low, low - low. The research concluded that the statistical tests among the variables of the study proved that the companies that recorded the highest market value of the company are obtaining a credit earned greater than the credit granted, i.e. the moderate policy of credit granted and the risk policy of credit earned, it indicates that the market value is high due to the average efficiency of the grantee. In addition, high efficiency of the gainer. The researcher recommends the necessity of adopting such variables in the studies of companies and generalizing their results to the society and not neglecting them to know the most important conclusions reached in order to give a clear vision on the importance of studying these variables and the necessary ways to find appropriate management for them at the level of commercial credit granted and their reflection on other objectives. The highest is to maximize shareholder value (

DOI: http://doi.org/10.37648/ijrssh.v10i01.011

Back Download

References

• Wu ,Wanlin, &Michaildis, Alexandros, Impacts of Credit Rating Announcements on Share Price in the NASDAQ Market and the Role Of the Credit Rating Agencies, Lund University School of Economics and Management, 2014
• Ehrhardt, Michael C. Brigham Eugene F, Financial Management: Theory and Practice, South-Western, a part of Cengage Learning 13thed ,2012
• Chou ,Jian-Hsin , Mei-Ching Yang &Tsung-Te Lin, (2011) , 'An Empirical Analysis of the Effect of Credit Rating on Trade Credit' , 2011 International Conference on Financial Management and Economics IPEDR vol.11 , IACSIT Press, Singapore .
• Olusola ,Ojenike Joseph , (2012) Use of Trade Credit in Nigeria: A Panel Econometric Approach , Research Journal of Finance and Accounting , Vol 3, No 2 .
• Pike . Richard & Bill Neale 2006,'Corporate Finance And Investment Decisions & Strategies' , 5th.ed. , Pearson Hall, Spain., .
• Beck, T. &Demirguc-Kunt, A. (2006). Small and medium0size enterprises: Access to finance as a growth constraint. Journal of Banking & Finance 30 2931-2943.
• DarushYazdanfar Peter Öhman , (2016),'The impact of trade credit use on firm profitability: empirical evidence from Sweden', Journal of Advances in Management Research, Vol. 13 Iss 2 pp. 1-16
• Al Dohaiman , Mohammed Saleh ,(2013) , Explaining the Determinants of Trade Credit: An Empirical Study in the Case of Saudi Arabian's unlisted Firms , Research Journal of Finance and Accounting Vol.4, No.17.
• Niskanen, J., Niskanen, M. (2000). Accounts Receivable and Accounts Payable in Large Finnish Firms Balance Sheets: What Determines Their Levels? The Finnish Journal of Business Economics, 489-503.
• FISMAN , RAYMOND and INESSA LOVE (2011) ,'Trade Credit, Financial Intermediary Development, and Industry Growth' , THE JOURNAL OF FINANCE , VOL. LVIII, NO. 1 , FEB.
• - García-Teruel, P. J., &Martínez-Solano, P. (2010). A dynamic perspective on the determinants of accounts payable. Rev Quant Finan ,Acc, 34, 439–457. doi: 1007/s11156-009-0124-0
• Kwenda ,Farai,(2014) ,'Trade Credit In Zimbabwe's Economic Recovery' Mediterranean Journal of Social Sciences , MCSER Publishing, Rome-Italy ,Vol 5 No 2.
• Solaa , Cristina Martı´nez&Teruelb, Pedro J. Garcıa´ Solanoa , Pedro Martı´nez- (2018) Trade credit policy and firm value , doi: 10.1111/j.1467-629X.2012.0048
• Malik, M. F., Qureshi, M. U. and Azeem, M, 2012. Determination of Share Price: Evidence from Karachi Stock
• NTHENGE , MWANGANGI JAMES , (2013) , RELATIONSHIP BETWEEN TRADE CREDIT AND VALUE OF FIRMS LISTED AT THE NAIROBI SECURITIES EXCHANGE , SCHOOL OF BUSINESS UNIVERSITY OF NAIROBI , THE DEGREE OF MASTER .