The DOI matches its Crossref record; 4 of the 4 references it cites were found in a registry or an index.
Trade Credit: Suppliers as Debt Collectors and Insurance Providers
Abstract
This article examines how in a context of limited enforceability of contracts suppliers may have a comparative advantage over banks in lending to customers because they are able to stop the supply of intermediate goods. Suppliers may act also as liquidity providers, insuring against liquidity shocks that could endanger the survival of their customer relationships. The relatively high implicit interest rates of trade credit are the result of insurance and default premiums that are amplified whenever suppliers face a relatively high cost of funds. I explore these effects empirically for a panel of UK firms. (JEL: G30, M130, D920)
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Cites
N. Berger, A., & F. Udell, G. (1998) · Journal of Banking & Finance · doi:10.1016/s0378-4266(98)00038-7 · Cited by 3,690
Nadaraya, E. A. (1964) · Theory of Probability & Its Applications · doi:10.1137/1109020 · Cited by 3,462
A transactions theory of trade credit use
Ferris, J. S. (1981) · The Quarterly Journal of Economics · doi:10.2307/1882390 · Cited by 603
Commercial paper, corporate finance and the business cycle: A microeconomic perspective
Calomiris, C. W., Himmelberg, C. P., & Wachtel, P. (1995) · Carnegie-Rochester Conference Series on Public Policy · doi:10.1016/0167-2231(95)00034-w · Cited by 269
Cited by
What You Sell Is What You Lend? Explaining Trade Credit Contracts
Giannetti, M., Burkart, M., & Ellingsen, T. (2011) · Review of Financial Studies · doi:10.1093/rfs/hhn096 · Cited by 938
Working capital management, corporate performance, and financial constraints
Baños-Caballero, S., García-Teruel, P. J., & Martínez-Solano, P. (2014) · Journal of Business Research · doi:10.1016/j.jbusres.2013.01.016 · Cited by 608
Trade Credit, Risk Sharing, and Inventory Financing Portfolios
Yang, S. A., & Birge, J. R. (2018) · Management Science · doi:10.1287/mnsc.2017.2799 · Cited by 561
Poultry in Motion: A Study of International Trade Finance Practices
Antràs, P., & Foley, C. F. (2015) · Journal of Political Economy · doi:10.1086/681592 · Cited by 312
Trade Credit, Relationship-specific Investment, and Product Market Power
Dass, N., Kale, J. R., & Nanda, V. (2015) · Review of Finance · doi:10.1093/rof/rfu038 · Cited by 303
Metadata
- Authors
- Cuñat, V.
- Venue
- Review of Financial Studies
- Publisher
- Oxford University Press (OUP)
- Published
- 2006-07-01
- Volume
- 20
- Issue
- 2
- Pages
- 491-527
- ISSN
- 0893-9454 (ISSN-L)
- 1465-7368
- OpenAlex
- W3124863821
- Cited by
- 976
- References
- 4
- FWCI
- 70.73
- Type
- journal article
- Language
- en
- Open access
- closed
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
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