Curbing Shocks to Corporate Liquidity: The Role of Trade Credit

• 成果类型: Article
• 署名作者: Amberg, Niklas; Jacobson, Tor; von Schedvin, Erik; Townsend, Robert
• 署名单位: Sveriges Riksbank; Centre for Economic Policy Research - UK; Massachusetts Institute of Technology (MIT)
• 刊物名称: JOURNAL OF POLITICAL ECONOMY
• ISSN/ISSBN: 0022-3808
• DOI: 10.1086/711403
• 发表日期: 2021
• 页码: 182-242
• 关键词: matching estimators; cash; RISK; FIRMS

摘要

Using data on liquidity shortfalls generated by the fraud and failure of a cash-in-transit firm, we demonstrate effects on firms' trade credit usage. We find that firms manage liquidity shortages by increasing the amount of credit drawn from suppliers and decreasing the amount issued to customers. The compounded trade credit adjustments are on average of similar magnitude as corresponding adjustments in cash holdings, suggesting that trade credit positions are economically important sources of reserve liquidity for firms. The underlying mechanism in trade credit adjustments is in part due to shifts in overdue payments.