Factors for Trade Debts of Firms and Possibilities of Reduction of Interfirm Indebtedness (Bulgarian)
AbstractThe article highlights the basic theoretical principles for firm financing with trade credit and the results of empirical research by the method of multiple regression analysis of factors, influencing the level of trade indebtedness of Bulgarian non-financial enterprises. Models are constructed that have been tested for two consecutive years, separately for SME and for big enterprises that allow incorporation in the analysis of the distinctions between them, including the access to institutional financing, the quality of management etc. Some of the main conclusions of the investigation are that trade credit is a substitute for institutional financing and that firms take trade credits from other firms to finance their own trade receivables and to hedge the risk. Together with the risky management of the financial structure of SME this is a prerequisite for generation of chains of arrears. Possibilities for reduction of the interfirm indebtedness and regulation of its size in the future are also formulated.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Bulgarian Academy of Sciences - Economic Research Institute in its journal Economic Thought.
Volume (Year): (2012)
Issue (Month): 6 ()
Find related papers by 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
- G39 - Financial Economics - - Corporate Finance and Governance - - - Other
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gregor Andrade & Steven N. Kaplan, 1998.
"How Costly is Financial (Not Economic) Distress? Evidence from Highly Leveraged Transactions that Became Distressed,"
Journal of Finance,
American Finance Association, vol. 53(5), pages 1443-1493, October.
- Gregor Andrade & Steven N. Kaplan, 1997. "How Costly is Financial (not Economic) Distress? Evidence from Highly Leveraged Transactions that Became Distressed," NBER Working Papers 6145, National Bureau of Economic Research, Inc.
- Anne-France Delannay & Laurent Weill, 2004.
"The Determinants of Trade Credit in Transition Countries,"
Economic Change and Restructuring,
Springer, vol. 37(3), pages 173-193, 09.
- Anne-France Delannay & Laurent Weill, 2005. "The Determinants of Trade Credit in Transition Countries," Economic Change and Restructuring, Springer, vol. 37(3), pages 173-193, 09.
- Smith, Janet Kiholm, 1987. " Trade Credit and Informational Asymmetry," Journal of Finance, American Finance Association, vol. 42(4), pages 863-72, September.
- Mitchell A. Petersen & Raghuram G. Rajan, .
"Trade Credit: Theories and Evidence,"
CRSP working papers
322, Center for Research in Security Prices, Graduate School of Business, University of Chicago.
- Arup Daripa & Jeffrey Nilsen, 2005. "Subsidizing Inventory: A Theory of Trade Credit and Prepayment," Birkbeck Working Papers in Economics and Finance 0522, Birkbeck, Department of Economics, Mathematics & Statistics.
- Carlos A. Molina & Lorenzo A. Preve, 2012. "An Empirical Analysis of the Effect of Financial Distress on Trade Credit," Financial Management, Financial Management Association International, vol. 41(1), pages 187-205, 03.
- Frederic Boissay & Reint Gropp, 2007.
"Trade Credit Defaults and Liquidity Provision by Firms,"
Working Paper Series: Finance and Accounting
179, Department of Finance, Goethe University Frankfurt am Main.
- Boissay, Frédéric & Gropp, Reint, 2007. "Trade credit defaults and liquidity provision by firms," Working Paper Series 0753, European Central Bank.
- Raghuram G. Rajan & Luigi Zingales, 1994.
"What Do We Know About Capital Structure? Some Evidence from International Data,"
NBER Working Papers
4875, National Bureau of Economic Research, Inc.
- Rajan, Raghuram G & Zingales, Luigi, 1995. " What Do We Know about Capital Structure? Some Evidence from International Data," Journal of Finance, American Finance Association, vol. 50(5), pages 1421-60, December.
- Simon Johnson & John McMillan, 2002.
"Courts and Relational Contracts,"
Journal of Law, Economics and Organization,
Oxford University Press, vol. 18(1), pages 221-277, April.
- Ferris, J Stephen, 1981. "A Transactions Theory of Trade Credit Use," The Quarterly Journal of Economics, MIT Press, vol. 96(2), pages 243-70, May.
- Benjamin S. Wilner, 2000. "The Exploitation of Relationships in Financial Distress: The Case of Trade Credit," Journal of Finance, American Finance Association, vol. 55(1), pages 153-178, 02.
- Cole, Rebel, 2010. "Bank credit, trade credit or no credit: Evidence from the Surveys of Small Business Finances," MPRA Paper 24689, University Library of Munich, Germany, revised 15 Mar 2010.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Vassil Zahariev).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.