The Days To Pay Accounts Payable Determinants Financing, Pricing Motives And Financial Substitution Effect A Panel Data GMM Estimation From European Western Countries

This paper proposes to elect the days to pay accounts payable determinants and the authors' findings strongly support that the accounts payable problematic is closely related to short term financial decisions with a positive and significant influence of firm's profitability and size factors. The existence of a firm's negative working capital is confirmed to influence strongly the reduction of the trade credit obtained from suppliers in Western Europe countries in parallel with a joint contribution of short and long term bank financing as a substitute from trade debt. Firm characteristics related to negative working capital and fixed assets level, jointly or alone, give more importance to the role of short term bank financing on substituting or reducing the volume of trade credit obtained from suppliers.