Trade Credit and the Propagation of Corporate Failure: An Empirical Analysis

Research, Preprint OPEN
Jacobsen, Tor; von Schedvin, Erik;
(2012)
  • Publisher: Sveriges Riksbank Stockholm
  • Subject: Schweden | G30 | G33 | Bankruptcy | Contagion | Credit chains | Insolvenz | Trade credit; Credit chains; Bankruptcy; Contagion | Lieferantenkredit | Ansteckungseffekt | Trade credit
    • jel: jel:G30 | jel:G33
      ddc: ddc:330

We quantify the importance of trade credit chains for the propagation of corporate bankruptcies. Our results show that trade creditors (suppliers) that issue more trade credit are more exposed to trade debtor (customer) failures, both in terms of the likelihood of exper... View more
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