Real Driver of Trade Credit
Employing unique data from a corporate survey, this paper examines whether changes in the amount of firms' trade debt are driven by real and/or financial measures taken by the firms in response to exogenous shocks. We find that firms that adopted real measures reduced their trade debt, while those that adopted financial measures increased it. We also find that real measures were more common than financial ones. These findings imply that changes in the amount of underlying real transactions, not changes in the terms of credit, are the real driver of changes in the amount of trade credit.
|Date of creation:||May 2013|
|Contact details of provider:|| Postal: 11th floor, Annex, Ministry of Economy, Trade and Industry (METI) 1-3-1, Kasumigaseki Chiyoda-ku, Tokyo, 100-8901|
Web page: http://www.rieti.go.jp/
More information through EDIRC
References listed on IDEAS
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.:
- Petersen, Mitchell A & Rajan, Raghuram G, 1997.
"Trade Credit: Theories and Evidence,"
Review of Financial Studies,
Society for Financial Studies, vol. 10(3), pages 661-691.
- Mitchell A. Petersen & Raghuram G. Rajan, "undated". "Trade Credit: Theories and Evidence," CRSP working papers 322, Center for Research in Security Prices, Graduate School of Business, University of Chicago.
- Mitchell A. Petersen & Raghuram G. Rajan, 1996. "Trade Credit: Theories and Evidence," NBER Working Papers 5602, National Bureau of Economic Research, Inc.
- Simona MATEUT & Spiros BOUGHEAS & Paul MIZEN, 2003.
"Trade Credit, Bank Lending and Monetary Policy Transmission,"
Economics Working Papers
ECO2003/02, European University Institute.
- Mateut, Simona & Bougheas, Spiros & Mizen, Paul, 2006. "Trade credit, bank lending and monetary policy transmission," European Economic Review, Elsevier, vol. 50(3), pages 603-629, April.
- Mateut, Simona & Spiros Bougheas & Paul Mizen, 2003. "Trade Credit, Bank Lending and Monetary Policy Transmission," Royal Economic Society Annual Conference 2003 149, Royal Economic Society.
- Simona Mateut & Spiros Bougheas & Paul Mizen, "undated". "Trade Credit, Bank Lending and Monetary Policy Transmission," Discussion Papers 05/01, University of Nottingham, Centre for Finance, Credit and Macroeconomics (CFCM).
- Emery, Gary W., 1987. "An Optimal Financial Response to Variable Demand," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 22(02), pages 209-225, June.
- Atanasova, Christina V. & Wilson, Nicholas, 2004. "Disequilibrium in the UK corporate loan market," Journal of Banking & Finance, Elsevier, vol. 28(3), pages 595-614, March.
- Brennan, Michael J & Maksimovic, Vojislav & Zechner, Josef, 1988. " Vendor Financing," Journal of Finance, American Finance Association, vol. 43(5), pages 1127-1141, December.
- Gertler, Mark & Gilchrist, Simon, 1993.
"The cyclical behavior of short-term business lending: Implications for financial propagation mechanisms,"
European Economic Review,
Elsevier, vol. 37(2-3), pages 623-631, April.
- Mark Gertler & Simon Gilchrist, 1993. "The cyclical behavior of short term business lending: implications for financial propagation mechanisms," Finance and Economics Discussion Series 93-6, Board of Governors of the Federal Reserve System (U.S.).
- Morris G. Danielson & Jonathan A. Scott, 2004. "Bank Loan Availability and Trade Credit Demand," The Financial Review, Eastern Finance Association, vol. 39(4), pages 579-600, November.
- 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.
- Jeffrey H. Nilsen, 1999.
"Trade Credit and the Bank Lending Channel,"
99.04, Swiss National Bank, Study Center Gerzensee.
- 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.
- Emery, Gary W & Nayar, Nandkumar, 1998. "Product Quality and Payment Policy," Review of Quantitative Finance and Accounting, Springer, vol. 10(3), pages 269-284, May.
- Yungsan Kim & Woon Gyu Choi, 2003.
"Trade Credit and the Effect of Macro-Financial Shocks; Evidence From U.S. Panel Data,"
IMF Working Papers
03/127, International Monetary Fund.
- Choi, Woon Gyu & Kim, Yungsan, 2005. "Trade Credit and the Effect of Macro-Financial Shocks: Evidence from U.S. Panel Data," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 40(04), pages 897-925, December.
- Kazuo Ogawa & Takanori Tanaka, 2013.
"The global financial crisis and small- and medium-sized enterprises in Japan: how did they cope with the crisis?,"
Small Business Economics,
Springer, vol. 41(2), pages 401-417, August.
- OGAWA Kazuo & TANAKA Takanori, 2012. "The Global Financial Crisis and Small- and Medium-sized Enterprises in Japan: How did they cope with the crisis?," Discussion papers 12012, Research Institute of Economy, Trade and Industry (RIETI).
- UCHIDA Hirofumi & UESUGI Iichiro & HOTEI Masaki, 2010. "Repayment Enforcement and Informational Advantages: Empirical determinants of trade credit use," Discussion papers 10041, Research Institute of Economy, Trade and Industry (RIETI).
- Giuseppe Marotta, 1997. "Does trade credit redistribution thwart monetary policy? Evidence from Italy," Applied Economics, Taylor & Francis Journals, vol. 29(12), pages 1619-1629.
- Arup Daripa & Jeffrey Nilsen, 2011. "Ensuring Sales: A Theory of Inter-firm Credit," American Economic Journal: Microeconomics, American Economic Association, vol. 3(1), pages 245-279, February.
When requesting a correction, please mention this item's handle: RePEc:eti:dpaper:13037. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (NUKATANI Sorahiko)
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.