The product differentiation hypothesis for corporate trade credit

Article Abstract:

The product differentiation hypothesis suggest an inverse relation between profit margin and trade credit in the event of an adjustment made for a minor disturbance in cost. A manager maintains revenue for price elastic demand by moderating the price increase and increases trade credit, which serves to maintain revenue by encouraging product demand.

Financial management, Product Development, Market Research & Product Development, Finance, International trade, Company financing, Time to market

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Corporate holding of finished goods inventories

Article Abstract:

There are two adverse consequences of stock outs, immediate forgone profit and long-run loss of revenue arising from the shift of customers to more reliable sources of supply. These are influenced by market competition, and the relation between finished goods inventories (FGIs) and the market-power of firms is expected to be negative.

Inventory Control, Evaluation, Inventory accounting

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The product differentiation hypothesis for corporate trade credit

Article Abstract:

A thoroughgoing discussion of the product differentiation hypothesis for corporate trade credit is presented. The association between the price of bad debts and the cost of the product offered on credit is examined in detail.

United States, Models, Analysis, Product differentiation, Debt financing (Corporations), Corporate debt

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