Credit sales and advance payments: Substitutes or complements?
AbstractWe investigate the interaction between supplier credit sales and customer advance payment. We find evidence that advance payments and credit sales are used as complementary terms of payment in international trade and in transactions of differentiated goods.
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Bibliographic InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 118 (2013)
Issue (Month): 1 ()
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Web page: http://www.elsevier.com/locate/ecolet
Trade credit; Advance payment; Complementarity; Substitutability; Signalling;
Other versions of this item:
- Simona Mateut & Piercarlo zanchettin, 2012. "Credit sales and advance payments: substitutes or complements?," Discussion Papers in Economics 12/18, Department of Economics, University of Leicester.
- G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
- 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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