This paper studies the trade credit policy of firms for a sample of Jordanian listed firms in the
period 2000–2014. In addition, this paper tests whether the accounts receivable decisions
follow a model of partial adjustment. The generalized methods of moments estimation
results suggest that firms have a target accounts receivable level and move toward this
target quickly. In addition, we find that short term finance, internal cash flow, positive sales
growth, product quality, and profitability are playing an important role in the trade credit …