The Effect of Working Capital Management and Bargaining Power‌on the Speed of Business Credit Adjustment

Articles in Press

Document Type : Research Paper

Authors

1 Assistant Professor, Department of Accounting, Payame Noor University, Tehran, Iran.

2 Payame Noor University, Tehran, Iran.

3 Master of Accounting, Payame Noor University, Tehran, Iran

10.22103/jak.2025.24127.4104

Abstract

Purpose: The purpose of this study is to investigate the effect of working capital management and bargaining power on the speed of trade credit adjustment.

Method: The presented research is of the applied type and also from the methodological point of view, because it has been investigated after the occurrence of an event, it is of the type of causal and post-event correlation.

Findings: Statistical results showed that working capital management can increase the speed of commercial credit adjustment in achieving optimal commercial credit. Also, the bargaining power of managers in business negotiations has a direct effect on the speed of adjustment of commercial credit and increases the speed of achieving the target commercial credit.

Conclusion: Because with the management of working capital, high stability in the amount of operating cycle and cash conversion cycle, and the opinions of the lenders, the company can be ahead of its competitors in terms of obtaining credits. In business negotiations and the parties to the transaction, in the last decade, taking into account the advanced marketing techniques and the psychological factors of negotiations, the discussion of bargaining power is very important, and if the managers can direct the counterparties and creditors in the direction of granting credits and investing in the company It can be a win-win deal for the parties, they can use their maximum power in reaching the optimal commercial credit and increase the adjustment speed.

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Main Subjects

Journal of Accounting Knowledge

Articles in Press, Accepted Manuscript
Available Online from 28 July 2025

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History

  • Receive Date: 06 October 2024
  • Revise Date: 17 January 2025
  • Accept Date: 28 July 2025

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