publication . Preprint . 2013

The Impact of Financial Development on the Relationship between Trade Credit, Bank Credit and Firm Characteristics

Jézabel Couppey-Soubeyran; Jérôme Héricourt;
Open Access
  • Published: 01 Jan 2013
Using a database of more than 1,300 firms from six countries in the MENA region, we study the impact of financial development on the relationship between trade credit on the one hand and bank credit access and firm-level characteristics, especially financial health, on the other hand. Trade credit use increases with the difficulty for gaining access to bank credit, and indicators of the quality of the firm's financial structure negatively influence the use of trade credit. Additional investigations tend to suggest that increased financial development significantly reduces the substitution relationship between trade credit and bank credit, and more generally decr...
ACM Computing Classification System: ComputingMilieux_MISCELLANEOUS
free text keywords: trade credit;bank credit; financial constraints; financial development
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