The Implicit Costs of Trade Credit Borrowing by Large Firms

• 成果类型: Article
• 署名作者: Murfin, Justin; Njoroge, Ken
• 署名单位: Yale University; University of Oregon
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhu051
• 发表日期: 2015
• 页码: 112
• 关键词: debt; INVESTMENT; shocks; CRISIS; IMPACT; POLICY

摘要

We examine a novel, but economically important, characterization of trade credit relationships in which large investment-grade buyers borrow from their smaller suppliers. Using a matched sample of large retail buyers and their much smaller suppliers, we find that slower payment terms by large retailers are associated with lower investment at the supplier level. The effects are sharpest during periods of tight bank credit and for firms which we might otherwise characterize as financially constrained. The opportunity cost of extending credit to large buyers appears to be positive and sharply increasing in the financial frictions facing a firm.