Credit Management: An Examination of Policy Choices, Practices and Late Payment in Uk Companies

Publication Type

Journal Article

Publication Date

9-2001

Abstract

A central element in developing credit management policy involves design choices on the extent to which credit activities are best managed internally or through specialist market intermediaries. This paper draws on the findings of a survey on the credit management practices and policies of large UK companies to: (1) Examine the type of firm most likely to enter into specialist external credit management structural arrangements; and (2) Identify contextual and credit policy choices influencing the credit period taken and late payment of debts. The study found that specialist intermediaries are not particularly common in large firms. The paper also identifies a number of contextual and policy variables that help explain variation in debtor days and late payment by customers.

Discipline

Accounting | Finance and Financial Management

Research Areas

Corporate Governance, Auditing and Risk Management

Publication

Journal of Business Finance and Accounting

Volume

28

Issue

7/8

First Page

1013

Last Page

1042

ISSN

0306-686X

Identifier

10.1111/1468-5957.00403

Publisher

Wiley

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