Trade Credit and the Effect of Macro-Financial Shocks : Evidence From U.S. Panel Data /

Many studies examine why firms are financed by their suppliers, but few empirical studies look at the macroeconomic implications of such financial arrangements. Using disaggregated panel data, we examine how firms extend and use trade credit. We find that, controlling for the transactions or asset m...

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Bibliografski detalji
Glavni autor: Kim, Yungsan
Daljnji autori: Choi, Woon
Format: Žurnal
Jezik:English
Izdano: Washington, D.C. : International Monetary Fund, 2003.
Serija:IMF Working Papers; Working Paper ; No. 2003/127
Online pristup:Full text available on IMF
Opis
Sažetak:Many studies examine why firms are financed by their suppliers, but few empirical studies look at the macroeconomic implications of such financial arrangements. Using disaggregated panel data, we examine how firms extend and use trade credit. We find that, controlling for the transactions or asset management motive, both accounts payable and receivable increase with tighter policy, implying that trade credit helps firms absorb the effect of a credit contraction. A comparison of S and P 500 firms with smaller firms, however, provides no evidence that when policy is tightened, large firms play the role of credit suppliers more actively than small firms.
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Opis:1 online resource (34 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Pristup:Electronic access restricted to authorized BRAC University faculty, staff and students