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Can military executives become good business partners? An analysis from a vendor-customer perspective

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  • Zhao, Xin
  • Tan, Zhenhua
  • Hou, De Shuai

Abstract

A good business partner is the foundation of stable development. Because of the enterprising quality of soldiers and the increasing number of military executives, the question of whether it can make suppliers feel “secure” and customers “thirsty for milk” in the transaction has aroused widespread concern but has yet to be explored in theory. This study found that enterprises with military executives have lower trade credit because enterprises with military executives will repay the arrears of suppliers and support the downstream customers in time. Even when the cash flow of an enterprise with military executives is not abundant, it will also form trade credit support for downstream customers and maintain timely payment to upstream suppliers. However, when the board size is large, the individual characteristics of military executives will be significantly restricted. The extended study found that the imprinting characteristics of military executives did not change over time.

Suggested Citation

  • Zhao, Xin & Tan, Zhenhua & Hou, De Shuai, 2023. "Can military executives become good business partners? An analysis from a vendor-customer perspective," International Review of Financial Analysis, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:finana:v:90:y:2023:i:c:s1057521923003769
    DOI: 10.1016/j.irfa.2023.102860
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    References listed on IDEAS

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    More about this item

    Keywords

    Military experience; Trade credit; Business partners; Brand theory;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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