publication . Article . Preprint . 2013

The Impact of Financial Development on the Relationship between Trade Credit, Bank Credit, and Firm Characteristics: A Study on Firm-Level Data from Six MENA Countries

Jérôme Héricourt; Jézabel Couppey-Soubeyran;
Open Access English
  • Published: 30 Jan 2013
  • Publisher: HAL CCSD
  • Country: France
Abstract
International audience; 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,...
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doi: 10.1515/rmeef-2012-0048 , 10.1515/rmeef-2012-0048〉
Subjects
ACM Computing Classification System: ComputingMilieux_MISCELLANEOUS
free text keywords: trade credit, bank credit, financial constraints, financial development, JEL: F - International Economics/F.F4 - Macroeconomic Aspects of International Trade and Finance, JEL: G - Financial Economics/G.G2 - Financial Institutions and Services, JEL: O - Economic Development, Innovation, Technological Change, and Growth, JEL: O - Economic Development, Innovation, Technological Change, and Growth/O.O1 - Economic Development/O.O1.O16 - Financial Markets • Saving and Capital Investment • Corporate Finance and Governance, JEL: O - Economic Development, Innovation, Technological Change, and Growth/O.O5 - Economywide Country Studies/O.O5.O55 - Africa, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, trade credit,bank credit,financial constraints,financial development, Financial system, Credit card interest, Economics, Credit enhancement, Credit history, Credit reference, Credit crunch, Credit rating, Bond credit rating
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