SSRScientific and Social Research2661-43322981-9946Bio-Byword Scientific Publishing Pty. Ltd.10.26689/ssr.v4i3.3659ArticleCommercial Credit and Corporate Performance: Business Credit or Business Trusthttps://artdesignp.com/journal/SSR/4/3/10.26689/ssr.v4i3.3659LiYan,OuYangXiaolin2022432022-03-11With the development of capital market, commercial credit has gradually become an important part of market credit. Throughout the long-term development of the manufacturing industry, commercial credit has been one of the indispensable soft powers in the process of enterprise development. Therefore, enterprises should fully recognize and use commercial credit as a new means to improve enterprise performance. This paper selects the financial data of China’s listed manufacturing enterprises from 2010 to 2019, divides commercial credit into business credit and business trust, as well as studies the relationship between commercial credit and corporate performance. The empirical results show that the business credit of manufacturing enterprises has significant positive correlation with corporate performance, but there is no significant positive correlation between business trust and corporate performance. This paper also provides effective suggestions for manufacturing enterprises to enhance commercial credit.

Rajan RG, Zingales L, 1998, Financial Dependence and Growth. The American Economic Review, 88(1): 559-586.

Schwartz RA, 1974, The Journal of Financial and Quantitative Analysis. Model of Trade Credit, 9(4): 643-657.

Ferris JSA, 1981, Transactions Theory of Trade Credit Use. The Quarterly Journal of Economics, 96(96): 243-270.

Yang X, Blenman LP, 2008, Corporate Inventory Financing: Trade Credit, Bank Loans. Retrieved, 7(30): 2009.

Lu Z, Yang D, 2011, Business Credit: Alternative Financing or Buyer’s Market. Management World, 2011(04): 6-14.

Yan Y, Jiang H, 2011, Credit System Change, Commercial Credit and Enterprise Performance. Economic Issues, 2011(11): 58-60, 100.

Cull R, 2009, Formal Finance and Trade Credit during China Transition. Journal of Financial Intermediation, 18(2): 173-192.

Wang L, Mao W, 2009, A Study on the Relationship between Bank Credit and Corporate Investment. Journal of Xi’an Jiaotong University (Social Science Edition), 29(1): 6-11.

Molina CM, Preve A, 2012, An Empirical Analysis of the Effect of Financial Distress on Trade Credit. Financial Management, 41(1): 187-205.

Tang Y, Song P, Tang G, 2014, Corporate Life Cycle, Debt Financing and Firm Performance: Evidence from China’s Listed Manufacturing Companies. Collection of Finance and Economics, 2014(11): 49-56.

Zhang L, Ma Y, 2016, Can Business Credit Improve Enterprise Performance?. Investment Research, 2016(2): 59-77.