Year 2017, Volume 5 , Issue 1, Pages 34 - 57 2017-07-14

EFFECT OF SUPPLY CHAIN FINANCE ON VALUE OF FIRMS IN THE SUPPLY CHAIN
EFFECT OF SUPPLY CHAIN FINANCE ON VALUE OF FIRMS IN THE SUPPLY CHAIN

Rıfat Karakuş [1] , İsrafil Zor [2]


This study aims to determine the effect of supply chain finance on firm value of large buyers with high credit notes. For this purpose, a two-stage application was performed. Firstly, panel data analysis applied with the data of 2.421 companies from 16 different countries among the G-20 members between 2009 and 2013 and the effect of variables which are affected theoretically by supply chain finance in large companies on firm value is examined. In the second stage of the application, 46 companies which started using supply chain finance between 2006 and 2013 have been identified. Wilcoxon signed-rank test was applied by using the data before and after year which the companies have been started to use supply chain finance and it is determined that whether the variables which is expected to be affected reveal a significant difference between these years. In conclusion, the effect of variables expected to be affected in large companies which make supply chain finance available for their suppliers on firm value differs for each market. Thus, it is concluded that supply chain finance will affect the firm value if the theoretical impacts are realized. However, the second part of the application shows that there is no significant difference in any of the variables before and after supply chain finance using. As a result, although theoretically it is expected that firm value of large companies located within the supply chain finance is affected, there is no effect on firm values in the markets. 

This study aims to determine the effect of supply chain finance on firm value of large buyers with high credit notes. For this purpose, a two-stage application was performed. Firstly, panel data analysis applied with the data of 2.421 companies from 16 different countries among the G-20 members between 2009 and 2013 and the effect of variables which are affected theoretically by supply chain finance in large companies on firm value is examined. In the second stage of the application, 46 companies which started using supply chain finance between 2006 and 2013 have been identified. Wilcoxon signed-rank test was applied by using the data before and after year which the companies have been started to use supply chain finance and it is determined that whether the variables which is expected to be affected reveal a significant difference between these years. In conclusion, the effect of variables expected to be affected in large companies which make supply chain finance available for their suppliers on firm value differs for each market. Thus, it is concluded that supply chain finance will affect the firm value if the theoretical impacts are realized. However, the second part of the application shows that there is no significant difference in any of the variables before and after supply chain finance using. As a result, although theoretically it is expected that firm value of large companies located within the supply chain finance is affected, there is no effect on firm values in the markets. 


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Subjects Social
Journal Section ARTICLES
Authors

Author: Rıfat Karakuş
Institution: ÇANKIRI KARATEKİN ÜNİVERSİTESİ
Country: Turkey


Author: İsrafil Zor
Institution: KIRIKKALE UNIV

Dates

Application Date : December 28, 2016
Acceptance Date : July 18, 2017
Publication Date : July 14, 2017

APA Karakuş, R , Zor, İ . (2017). EFFECT OF SUPPLY CHAIN FINANCE ON VALUE OF FIRMS IN THE SUPPLY CHAIN . International Review of Economics and Management , 5 (1) , 34-57 . DOI: 10.18825/iremjournal.282112