Katarzyna Ziętek-Kwaśniewska

Aim: The primary aim of this article is to investigate the effect of the cash conversion cycle (CCC) on profitability within dairy cooperatives in Poland. Material and Methods: The article employs a panel data approach to analyze the relationship between CCC and the profitability of 53 dairy cooperatives in Poland from 2018 to 2023. The financial data necessary for the empirical verification were collected from the Emerging Markets Information Service (EMIS) database. The study examines both linear and nonlinear relationships between CCC and the profitability of the entities under study. Results: Empirical evidence reveals an inverted U-shaped relationship between working capital management as measured by the CCC and the profitability of dairy cooperatives. The findings indicate the existence of an optimal CCC level that maximizes the profitability of dairy cooperatives. This level ranges from approximately 21.5 to 23 days, depending on the model specifications. Furthermore, control variables such as leverage and sales growth exert a significant influence on profitability, exhibiting negative and positive effects, respectively. Conclusions: The findings of this study corroborate the significance of effective working capital management for the profitability of dairy cooperatives in Poland. The financial managers of cooperatives, in their efforts to maximize profit, are advised to calibrate the duration of CCC around its optimal level. This article makes a substantial contribution to the extant literature on working capital management by offering a novel perspective on its relationship with the outcomes of dairy cooperatives. The findings are significant in theoretical and practical contexts.

The existing literature on trade credit and corporate social responsibility (CSR) is extensive. Despite the rich discourse on the above topics, there is a lack of studies that synthesize the existing body of work on the relationship between using trade credit – as its provider and recipient – and firms’ CSR. The present article aims to address this gap by pursuing a dual objective. First, it seeks to answer the following research question: What is the relationship between firms’ CSR and their use of trade credit? Secondly, it aims to identify possible avenues for future research in a given area. This review indicates that vast studies investigating the above issue have found a positive impact of firms’ CSR performance on trade credit use – both its receiving and providing. Regarding trade credit-CSR linkage, the study highlights the need for a more in-depth examination of late or non-payment phenomena, a more detailed exploration of suppliers’ perceptions of buyers’ CSR performance, and an extension of the geographical scope of the analysis.

Purpose: This paper aims to (1) provide insight into the cultural issues of the use of trade credit, focusing on the links between trade credit and trust, religion, and national culture, and (2) suggest potential directions for future research in this area. Design/methodology/approach: A literature review was conducted to identify the key cultural issues addressed in previous studies on trade credit and to summarize the research on the use of trade credit in three focus areas: trust, religion, and national culture. Findings: A literature review confirms that cultural factors, such as trust, religion, and national culture, play crucial roles in the provision and receipt of trade credit. Therefore, future research on trade credit should adopt a more comprehensive approach that extends beyond a purely financial perspective. Research limitations/implications: This review does not address all potential cultural factors that may impact the use of trade credit. In addition, the review is constrained by the limited research conducted in this area and the heterogeneity of the studies analyzed. Practical implications: Given the significance of trade credit in business operations, a thorough understanding of its cultural underpinnings can prove vital for the parties involved in a trade credit agreement. Originality/value: Despite the crucial importance of trade credit for companies and the extensive research devoted to it, the cultural dimension of its use remains an underexplored field. This article addresses this issue by providing an overview of the current state of research on trade credit concerning three cultural aspects: trust, religion, and national culture. Furthermore, the article outlines several potential directions for future research in the subject of the study. The article’s subject matter falls within the expanding domain of culture and finance. Keywords: trade credit, trust, religion, national culture, ethics. Category of the paper: Literature review.

The main purpose of this paper is to evaluate the use of trade credit by dairies in Poland, taking into account their legal form – cooperative versus non-cooperative dairies. The survey covered 113 dairies in Poland, of which 55.8% were cooperatives and 44.2% were entities operating in another form. The study concerned the years 2018–2020. The financial data used in this paper was retrieved from the Emerging Markets Information Service database (EMIS). The results show that trade receivables were an important item in total assets and current assets of dairies, and trade payables were an important source of financing their operations. During the period under consideration, the dairies surveyed reduced their use of trade credit, especially as a trade creditor. The number of net trade debtors increased in 2020 relative to previous years due to the increase in their number in the group of dairy cooperatives. The dairies surveyed were slightly faster in recovering trade receivables than repaying their obligations to suppliers. In 2020 relative to 2018, most dairies shortened their cash conversion cycle. Non-cooperative dairies showed higher average shares of trade receivables in total assets and current assets than cooperatives, which can be linked to differences in their goals. Dairy cooperatives paid off their trade payables and collected trade receivables faster, as well as managed their inventories more efficiently than their non-cooperative counterparts. Zasadniczym celem artykułu jest ocena wykorzystania kredytu kupieckiego przez mleczarnie w Polsce z uwzględnieniem ich formy prawnej jako spółdzielczych lub niespółdzielczych mleczarni. Badaniem objęto 113 mleczarni w Polsce, z czego 55,8% stanowiły spółdzielnie, a 44,2% – podmioty prowadzące działalność w innej formie. Analiza dotyczyła lat 2018–2020. Dane finansowe potrzebne do realizacji badania pozyskano z bazy EMIS. Badanie wykazało, że należności z tytułu udzielonego kredytu handlowego stanowiły ważną pozycję aktywów ogółem oraz aktywów obrotowych badanych mleczarni, a zobowiązania handlowe były istotnym źródłem finansowania ich działalności. W rozważanym okresie analizowane podmioty ograniczyły swoje zaangażowanie w zakresie wykorzystania kredytu kupieckiego, zwłaszcza w charakterze jego dawcy. W 2020 r. względem lat wcześniejszych wzrosła liczba biorców per saldo kredytu kupieckiego za sprawą zwiększenia się ich liczby w grupie spółdzielni mleczarskich. Badane mleczarnie nieco szybciej odzyskiwały należności handlowe niż spłacały swoje zobowiązania wobec dostawców. W 2020 r. względem 2018 r. w większości mleczarni odnotowano skrócenie cyklu konwersji gotówki. Niespółdzielcze mleczarnie wykazywały wyższe średnie udziały należności handlowych w aktywach ogółem oraz aktywach obrotowych niż spółdzielnie, co można wiązać z różnicami w zakresie ich celów. Spółdzielnie mleczarskie szybciej spłacały swoje zobowiązania handlowe i ściągały należności handlowe oraz sprawniej zarządzały swoimi zapasami niż inne podmioty z sektora.

Several studies conducted in various countries have addressed the technical efficiency of dairies. However, there is a paucity of research on the technical efficiency of dairies in Poland, particularly in relation to their legal form (i.e., cooperatives vs. non-cooperatives). The existing literature also does not provide insights into the technical efficiency of these entities with respect to different regions’ milk production capacity. Therefore, this paper aims to: (1) evaluate and compare the technical efficiency of cooperative and non-cooperative dairies in Poland, and (2) examine dairies’ technical efficiency due to spatial disparities in milk production potential. We use data envelopment analysis (DEA) to investigate the technical efficiency of 108 dairies in Poland for the year 2019. The milk production capacity of provinces is examined by applying the zero unitarization method. The results show that when assuming constant returns to scale (CRS), dairy cooperatives are less technically efficient than non-cooperatives, whereas when assuming variable returns to scale (VRS), these differences are not statistically significant. For inefficient dairies, we observe the greatest potential for improvement in labor costs and depreciation. Both cooperatives and non-cooperatives operate mostly under decreasing returns to scale. Thus, the potential for enhancing the technical efficiency of dairies through the consolidation process seems to be exploited. Our findings reveal that the technical efficiency of dairies in Poland is not differentiated by regional milk production potential.