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Inventory leanness requires that firms minimize inventory mistreatment and misuse. A firm performance deteriorates because of high inventory misuse, and because of such an issue, the effect on the firm’s credit rating can also be seen. This study examines the effect of inventory leanness on firms’ credit ratings. It aims to create an understanding...
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Context 1
... hypothesis indicates that low levels of inventory are linked with better credit ratings. Table 8 shows a positive and significant association between ELI and credit ratings. As for the control variables, all variables are significantly related, but SIZE has a positive relation, whereas LEVERAGE and CAPINT have a negative relationship. ...