The Impact of Trade Credit on Firm Performance : A Case of Companies Listed in Pakistan Stock Exchange

Abstract

Trade Credit used the firms to increase sale as well as profitability. This research conducted to explain the effect of trade credit on firm’s financial performance of companies listed in Pakistan Stock Exchange from the period of 2006 t0 2015. Data was collected from State Bank of Pakistan balance sheet analysis reports. We used ROA and Tobin’s Q as proxies of firm performance in wider perspective. This study expand explanatory variables by using control variables that is leverage, growth and size, have an effect on firm profitability.