Brand capital and trade credit policy

Authors

Akinloye Akindayomi, The University of Texas Rio Grande Valley
Md. Ruhul Amin

Document Type

Article

Publication Date

12-2025

Abstract

We proxy for customer awareness and perception of firms' range and types of products/services to examine the relation between a firm’s brand capital and its trade credit policies. We find that firms with higher stock of brand capital increase their use of supplier credit while decreasing extension of customer credit. These effects are more pronounced in firms facing higher financing constraints and those operating in a higher product market competition environment. We also document the impact of brand capital on working capital management. Overall, this study provides evidence that links brand capital with corporate trade credit policies and financing outcomes.

Comments

Original published version available at https://doi.org/10.1016/j.econlet.2025.112687

Recommended Citation

Akindayomi, A. and Amin, M.R., 2025. Brand capital and trade credit policy. Economics Letters, p.112687. https://doi.org/10.1016/j.econlet.2025.112687

Publication Title

Economics Letters

DOI

10.1016/j.econlet.2025.112687