TY  - JOUR
U1  - Zeitschriftenartikel, wissenschaftlich - begutachtet (reviewed)
A1  - Beyer, Hans-Martin
A1  - Herzog, Bodo
T1  - Supply chain finance : cost-benefit differentials under reverse factoring with extended payment terms
JF  - International journal of financial studies
N2  - This article studies the effects of reverse factoring in a supply chain when the buyer company facilitates its lower short-term borrowing rates to the supplier corporation in return for extended payment terms. We explore the role of interest rate changes, rating changes, and the business cycle position on the cost and benefit trade-off from a supplier perspective. We utilize a combined empirical approach consisting of an event study in Step 1 and a simulation model in Step 2. The event study identifies the quantitative magnitude of central bank decisions and rating changes on the interest rate differential. The simulation computes with a rolling-window methodology the daily cost and benefits of reverse factoring from 2010 to 2018 under the assumption of the efficient market hypothesis. Our major finding is that changes of crucial financial variables such as interest rates, ratings, or news alerts will turn former win-win into win-lose situations for the supplier contingent to the business cycle. Overall, our results exhibit sophisticated trade-offs under reverse factoring and consequently require a careful evaluation in managerial decisions.
KW  - supply chain finance
KW  - reverse factoring
KW  - payment term extension
KW  - simulation
KW  - event study
KW  - interest rates
KW  - central bank
KW  - rating update
KW  - company news
KW  - business cycle
Y1  - 2021
UN  - https://nbn-resolving.org/urn:nbn:de:bsz:rt2-opus4-32807
SN  - 2227-7072
SS  - 2227-7072
U6  - https://doi.org/10.3390/ijfs9040059
DO  - https://doi.org/10.3390/ijfs9040059
VL  - 9
IS  - 4
SP  - 17
S1  - 17
PB  - MDPI
CY  - Basel
ER  -