Customer financing, bargaining power and trade credit uptake

Mateut, Simona and Chevapatrakul, Thanaset (2018) Customer financing, bargaining power and trade credit uptake. International Review of Financial Analysis . ISSN 1057-5219

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Abstract

We investigate the impact of well-established trade credit theories on different parts of the distribution of trade credit taken by firms. Our results suggest that the trade credit – bank loans substitution increases at the higher trade credit quantiles and is stronger for larger firms (financing theory). Firms with high market shares operating in less concentrated industries have higher account payables to assets ratios (bargaining power theory). While the customer bargaining power motive strengthens up to the 70th quantile and prevails in industries independent from external finance, financing reasons play the main role especially at the higher trade credit quantiles.

Item Type: Article
RIS ID: https://nottingham-repository.worktribe.com/output/945589
Keywords: trade credit; bargaining power; panel quantile regression
Schools/Departments: University of Nottingham, UK > Faculty of Social Sciences > Nottingham University Business School
Identification Number: https://doi.org/10.1016/j.irfa.2018.07.004
Depositing User: Eprints, Support
Date Deposited: 04 Jul 2018 08:17
Last Modified: 04 May 2020 19:45
URI: http://eprints.nottingham.ac.uk/id/eprint/52751

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