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Il debito commerciale in Italia: quanto contano le motivazioni finanziarie?

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Author Info

  • Paolo Finaldi Russo

    ()
    (Bank of Italy, Economic Research Department)

  • Luigi Leva

    ()
    (Bank of Italy,Research Department,Rome Branch)

Abstract

Trade credit arises from delayed payments between firms. It is not easy to identify its determinants since they are connected to organisational,technical, commercial and financial factors.In this paper we empirically examine the determinants of the usage of trade credit by Italian industrial firms. We use an original database that contains detailed information from an ad hoc survey of Bank of Italy on trade credit, from Italian Central Credit Register on banking relations and from firmsÂ’ balance sheet.The focus of the paper concerns the role of financial reasons among the determinants of trade credit demand. The Bank of Italy survey shows that financial motives are less frequent than transactive ones; nevertheless we find a positive correlation between financial reasons and the amount of accounts payable, while the opposite occurs for firms that delay the payments to their suppliers in order to control the quality of purchased goods. The main findings of our empirical analysis are: i) financial determinants of trade credit demand are more frequent among firms in financial distress (rationed firms, firms with lower unused lines of credit and firms with a higher cost of credit); ii) firms in financial distress and firms in trouble have more accounts payable; iii) finally, these firms do not obtain from their suppliers a higher amount of accounts payable (or more delayed payments) but they are able to increase their usage of trade credit by paying over the due date.

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Bibliographic Info

Paper provided by Bank of Italy, Economic Research and International Relations Area in its series Temi di discussione (Economic working papers) with number 496.

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Date of creation: Jun 2004
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Handle: RePEc:bdi:wptemi:td_496_04

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Web page: http://www.bancaditalia.it
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Related research

Keywords: trade credit; corporate finance; credit rationing;

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References

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  1. Domenica J. Marchetti, 1999. "Markup and the Business Cycle: Evidence from Italian Manufacturing Branches," Temi di discussione (Economic working papers) 362, Bank of Italy, Economic Research and International Relations Area.
  2. Luigi Cannari & Giovanni D'Alessio, 2003. "La distribuzione del reddito e della ricchezza nelle regioni italiane," Temi di discussione (Economic working papers) 482, Bank of Italy, Economic Research and International Relations Area.
  3. Lorenzo Forni, 2004. "Centralization of wage bargaining and the unemployment rate: revisiting the hump-shape hypothesis," Temi di discussione (Economic working papers) 492, Bank of Italy, Economic Research and International Relations Area.
  4. Marchetti, D.J., 1999. "Markup and the Business Cycle: Evidence from Italian Manufacturing Branches," Papers 362, Banca Italia - Servizio di Studi.
  5. Anthony B. Atkinson & Andrea Brandolini, 2000. "Promise and Pitfalls in the Use of 'Secondary' Data-Sets: Income Inequality in OECD Countries," Temi di discussione (Economic working papers) 379, Bank of Italy, Economic Research and International Relations Area.
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Citations

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Cited by:
  1. Giuseppe Ferrero, 2004. "Monetary Policy and the Transition to Rational Expectations," Temi di discussione (Economic working papers) 499, Bank of Italy, Economic Research and International Relations Area.
  2. Palumbo, Giuliana, 2006. "Optimal duplication of effort in advocacy systems," Journal of Economic Behavior & Organization, Elsevier, vol. 60(1), pages 112-128, May.
  3. Fabiano Schivardi & Roberto Torrini, 2004. "Firm size distribution and employment protection legislation in Italy," Temi di discussione (Economic working papers) 504, Bank of Italy, Economic Research and International Relations Area.
  4. Guido De Blasio, 2004. "Does trade credit substitute for bank credit?," Temi di discussione (Economic working papers) 498, Bank of Italy, Economic Research and International Relations Area.
  5. Alberto Baffigi & Antonio Bassanetti, 2004. "Turning-point indicators from business surveys: real-time detection for the euro area and its major member countries," Temi di discussione (Economic working papers) 500, Bank of Italy, Economic Research and International Relations Area.

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