IDEAS home Printed from https://ideas.repec.org/a/brf/journl/v9y2011i4p585-612.html
   My bibliography  Save this article

The Supply of Trade Credit by Brazilian Publicly Traded Firms

Author

Listed:
  • Rafael Felipe Schiozer

    (EAESP/FGV)

  • João Alberto Peres Brando

    (LCA Consultores)

Abstract

This paper investigates the determinants of trade credit supply by Brazilian publicly traded companies between the years of 2005 and 2008. International literature (both theoretical and empirical) documents that the main determinants of trade credit supply are the size of the firm and the size of its debt. Both indicate that the availability of resources to the firm is an important factor for the supply of trade credit. In addition, the literature confirms strategic uses of trade credit such as those for price discrimination purposes. The results obtained using a sample of 157 Brazilian companies do not support that size and indebtedness are relevant determinants for trade credit supply, but they confirm the supply of trade credit as a strategic tool for the firms. Additionally we observed a significant decrease in trade credit supply in 2008, the year in which a severe international financial crisis took place.

Suggested Citation

  • Rafael Felipe Schiozer & João Alberto Peres Brando, 2011. "The Supply of Trade Credit by Brazilian Publicly Traded Firms," Brazilian Review of Finance, Brazilian Society of Finance, vol. 9(4), pages 585-612.
    • Handle: RePEc:brf:journl:v:9:y:2011:i:4:p:585-612
    as

    Download full text from publisher

    File URL: http://bibliotecadigital.fgv.br/ojs/index.php/rbfin/article/download/2920/2388
    Download Restriction: no
    File URL: http://bibliotecadigital.fgv.br/ojs/index.php/rbfin/article/view/2920
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    trade credit; short term debt.;

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:brf:journl:v:9:y:2011:i:4:p:585-612. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marcio Laurini (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.