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Inventory composition and trade credit

Author

Listed:
  • Simona Mateut

    (Nottingham University Business School [Nottingham])

  • Paul Mizen

    (UON - University of Nottingham, UK)

  • Ydriss Ziane

    (IAE Paris - Sorbonne Business School)

Abstract

This empirical paper uses a panel of about half a million observations for French firms across economic sectors to investigate how the type of inventories can affect firms' incentives to use trade credit. We find evidence that trade credit extended is influenced by the extent to which firms hold different types of inventories. Moreover, we show that the strength of the relationship varies across economic sectors. Finally, we find that as buyers process goods, the sellers' incentives to extend trade credit diminish.

Suggested Citation

  • Simona Mateut & Paul Mizen & Ydriss Ziane, 2015. "Inventory composition and trade credit," Post-Print halshs-02023750, HAL.
  • Handle: RePEc:hal:journl:halshs-02023750
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-02023750
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    References listed on IDEAS

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    Cited by:

    1. Mateut, Simona & Chevapatrakul, Thanaset, 2018. "Customer financing, bargaining power and trade credit uptake," International Review of Financial Analysis, Elsevier, vol. 59(C), pages 147-162.
    2. Jia, Fu & Blome, Constantin & Sun, Hui & Yang, Yang & Zhi, Bangdong, 2020. "Towards an integrated conceptual framework of supply chain finance: An information processing perspective," International Journal of Production Economics, Elsevier, vol. 219(C), pages 18-30.
    3. Isaac Kwame Essien Obeng, 2016. "Delaying payments after the financial crisis: evidence from EU companies," MENDELU Working Papers in Business and Economics 2016-66, Mendel University in Brno, Faculty of Business and Economics.
    4. Afrifa, Godfred Adjapong & Gyapong, Ernest & Monem, Reza M., 2018. "Product differentiation, market dynamics and the value relevance of trade payables: Evidence from UK listed firms," Journal of Contemporary Accounting and Economics, Elsevier, vol. 14(3), pages 235-253.

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    More about this item

    Keywords

    Inventories; Trade credit;

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • 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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