Abstract:

Timely payment to suppliers is a big issue in purchasing and supply management (PSM) but research into its determinants is limited. Here we draw on social responsibility, fintech and digital purchasing literatures, and institutional and stakeholder theories, to explain variations in supplier payment times. A sample of 509 firms spanning 2018-2021 is used for the panel regression analysis. Contrary to expectations, the pandemic did not lead to longer payment times or reduced compliance with payment terms, which we attribute to state-funded business supports and corporate decisions to accelerate payment to vulnerable suppliers. Institutional pressure in the form of payment codes was associated with shorter payment times and improved compliance during the pandemic. Supply chain finance (SCF) was associated with longer payment times during the pandemic. e-Invoicing had no effect. Overall, institutional pressure seems to make a difference to payment times but stakeholder-centred fintech and tech does not.

Please choose your submission type: Full Paper

Primary Track: Financial Management

Keywords: Corporate Finance ,Financial Technology (FinTech) ,Responsible Investors and the Firm

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Dr. Anthony Flynn