|
INTRODUCTION
The delay of payments in commercial transactions between companies is not a recent phenomenon in the real economy and it can have a negative impact not only on the performance of companies that grant the trade credit (TC), but also on the reputation of the offenders (Petersen & Rajan, 1994) and the confidence level of the business environment. This event is the realization of hidden action of asymmetric information (Akerlof, 1970) in contracts.
Howorth and Reber (20
What are the organizational characteristics of companies not listed on the stock exchange associated with delinquent behavior of late payment to suppliers?
The main objective of this study is to analyze whether demographic, operational and financial factors are associated, significantly or not, to the practice of late payments of commercial credits in companies not listed in the stock exchange.
THEORETICAL AND EMPIRICAL FRAMEWORK
The theoretical perspectives of agency and transaction costs support the development of this study.
2.1 Transaction Costs
A firm can be understood as a nexus of contracts in which there are two types of costs, production that take place within it, and the transaction with third parties (Coase, 1937). A transaction occurs when a good or service is transferred across technologically distinct interfaces (Williamson, 1981). According to this theoret
DATA AND METHODS
Data collection procedure
Considering the objective of this study and the absence of public databases available, I carried out a survey of managers and financial executives of companies about short-term financial management practices.
The units of analysis were organizations not listed on BM&FBOVESPA. The companies, of all sizes, were based in 32 Brazilian cities, 65% in São Paulo and 35% in the State of Minas Gerais.
The classification of the compa
RESULTS
Sample
The sample comprised 554 companies of varying sizes, being 51.6% micro companies, 37% small, 5.2% average and 6.1% large companies, showing that the size distribution of companies has positive asymmetry, consistent with the geographic population of the companies. When you separate the data relating to the practice of delaying payments or not, you find that 53.4% of the companies delayed payment to vendors quite frequently. The null hypothesis of binomial distribution ratio
|
