Abnormal inventory and performance in manufacturing companies – evidence from trade credit channels
Journal article
Afrifa, G., Alshehabi, A., Tingbani, I. and Halabi, H. 2020. Abnormal inventory and performance in manufacturing companies – evidence from trade credit channels. Review of Quantitative Finance and Accounting . https://doi.org/10.1007/s11156-020-00903-y
Authors | Afrifa, G., Alshehabi, A., Tingbani, I. and Halabi, H. |
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Abstract | This paper examines the value of abnormal inventory and the channels through which firms decrease abnormally high inventory or increase abnormally low inventory for a sample of 976 United Kingdom (UK) manufacturing firms over the period from 2006 to 2015. Using GMM regressions, the results show that (i) an optimal inventory policy exists; and (ii) firms that are able to converge at this optimal inventory level by either decreasing abnormally high inventory or increasing abnormally low inventory improve operational and stock performance. Importantly, the results show that |
Keywords | Abnormal inventory; Firm performance; Trade receivables; Trade payables; Firm risk |
Year | 2020 |
Journal | Review of Quantitative Finance and Accounting |
Publisher | Springer |
ISSN | 0924-865X |
Digital Object Identifier (DOI) | https://doi.org/10.1007/s11156-020-00903-y |
Official URL | https://doi.org/10.1007/s11156-020-00903-y |
Publication dates | |
Online | 30 Jun 2020 |
Publication process dates | |
Deposited | 22 Jun 2020 |
Accepted | 11 Jun 2020 |
Accepted author manuscript | File Access Level Open |
Output status | Published |
https://repository.canterbury.ac.uk/item/88z21/abnormal-inventory-and-performance-in-manufacturing-companies-evidence-from-trade-credit-channels
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