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
Abstract
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...
Subjects
ACM Computing Classification System: ComputingMilieux_MISCELLANEOUS
free text keywords: trade credit;bank credit; financial constraints; financial development
59 references, page 1 of 4

Aghion, P. 2008. “Interaction Effects in the Relationship between Growth and Finance.” In Handbook of European Financial Markets and Institutions, part 1.2, edited by X. Freixas et al. Oxford: Oxford University Press.

Arcand, J. L., E. Berkes, and U. Panizza. 2012. “Too much Finance?” Working Paper no. 12/161, International Monetary Fund.

Beck, T. 2002. “Financial Development and International Trade: Is There a Link?” Journal of International Economics 57:107-31.

Beck, T., A. Demirgüç-Kunt, and R. Levine. 2000. “A New Database on Financial Development and Structure.” World Bank Economic Review 14: 597-605. [OpenAIRE]

Berger, A. N., and G. F. Udell. 1995. “Relationship Lending and Lines of Credit in Small Firm Finance.” Journal of Business 68(3):351-81. [OpenAIRE]

Berger, A. N., and G. F. Udell. 1998. “The Economics of Small Business Finance: The Roles of Private Equity and Debit Markets in the Financial Growth Cycle.” Journal of Banking and Finance 22(8):613-73. [OpenAIRE]

Berger, A. N., and G. F. Udell. 2002. “Small Business Credit Availability and Relationship Lending: The Importance of Bank Organisational Structure.” Economic Journal 112 (477):32-53. [OpenAIRE]

Bergöf, E., and P. Bolton. 2002. “The Great Divide and Beyond: Financial Architecture in Transition.” Journal of Economic Perspectives 16:77-110.

Biais, B., and C. Gollier. 1997. “Trade Credit and Credit Rationing.” Review of Financial Studies 10:903-37. [OpenAIRE]

Biggs, T., M. Raturi, and P. Srivastavac. 2002. “Ethnic Networks and Access to Credit: Evidence from the Manufacturing Sector in Kenya.” Journal of Economic Behavior and Organization 49(4):473-86. [OpenAIRE]

Breig, H. 1994. “Bank Lending and Corporate Financing in Major Industrial Countries: Are France and Germany Really Similar?” Working Paper, Breisgau: Albert Ludwing Universitat.

Brennan, M., V. Macksimovic, and J. Zechner. 1988. “Vendor Financing.” Journal of Finance 43:1127-41.

Burkart, M., and T. Ellingsen. 2004. “In‐Kind Finance: A Theory of Trade Credit.” The American Economic Review 94(3):569-90.

Carbo-Valverde, S., F. Rodriguez-Fernandez, and G. Udell. 2008. “Bank Lending, Financing Constraints and SME Investment.” Federal Reserve Bank of Chicago Working Paper no. 2008-04.

Carbo-Valverde, S., F. Rodriguez-Fernandez, and G. Udell. 2012. “Trade Credit, the Financial Crisis, and Firm Access to Finance,” mimeo, University of Granada.

59 references, page 1 of 4
Powered by OpenAIRE Research Graph
Any information missing or wrong?Report an Issue