Commercial Credit and Corporate Performance: Business Credit or Business Trust

Abstract

With 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.