Trade Crediting – Barriers to Its Use for Financing the Innovations
Trade credit is one of the traditional sources of firm financing, which keeps its significance in the modern conditions of development of the financial markets and innovations. It is a means of increasing the flexibility and adaptivity of the firms. Its significance as a financial and operative instrument for carrying out the enterprise activity additionally increases in crisis and lowering the access to institutional financing. As an alternative source of financial resource, the trade credit encourages the innovation activity of the enterprises. However, its impact could be opposite as well. The increase of intra-firm debts above certain sizes, particularly of the share of delayed and uncollectable debts becomes a factor, which moves the focus of the management attention from the opportunities of innovative development to insuring liquidity necessary for survival of the firm.
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Volume (Year): (2012)
Issue (Month): 3 ()
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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.:
- J. Stephen Ferris, 1981. "A Transactions Theory of Trade Credit Use," The Quarterly Journal of Economics, Oxford University Press, vol. 96(2), pages 243-270.
- Lee, Yul W. & Stowe, John D., 1993. "Product Risk, Asymmetric Information, and Trade Credit," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 28(02), pages 285-300, June.
- Mike Burkart & Tore Ellingsen, 2004. "In-Kind Finance: A Theory of Trade Credit," American Economic Review, American Economic Association, vol. 94(3), pages 569-590, June.
- Emery, Gary W., 1984. "A Pure Financial Explanation for Trade Credit," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 19(03), pages 271-285, September.
- Mitchell A. Petersen & Raghuram G. Rajan, 1996.
"Trade Credit: Theories and Evidence,"
NBER Working Papers
5602, National Bureau of Economic Research, Inc.
- Delimatsis, Panagiotis, 2011. "Financial Innovation and Transparency in Turbulent Times," Journal of Financial Transformation, Capco Institute, vol. 33, pages 99-112.
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"Courts and Relational Contracts,"
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Oxford University Press, vol. 18(1), pages 221-277, April.
- Smith, Janet Kiholm, 1987. " Trade Credit and Informational Asymmetry," Journal of Finance, American Finance Association, vol. 42(4), pages 863-72, September.
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