Trade credit in zimbabwe's economic recovery

Abstract

The aim of this study is to investigate factors influencing the use of trade credit by Zimbabwean manufacturing firms. Zimbabwe's economy is on a recovery path after the decade-long political, social and economic crises. The recovery of the Zimbabwean economy has been largely hampered by a number of factors; chief among them, poor liquidity and difficulties in accessing working capital finance. The study is based on secondary data of 48 firms listed on the Zimbabwe Stock Exchange. The study found that firm size, investments in current assets and access to external funds influence the use of trade credit among these firms.