Trade credit and the stability of supply chains

• 成果类型: Article
• 署名作者: Ersahin, Nuri; Giannetti, Mariassunta; Huang, Ruidi
• 署名单位: Southern Methodist University; Stockholm School of Economics; Swedish House of Finance
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2024.103830
• 发表日期: 2024
• 关键词: Supply chains; Operating shocks; production networks; Trade credit; natural disasters

摘要

We show that trade credit flows increase when a firm in a production network becomes a less reliable supplier due to an operating shock. Affected firms extend more trade credit when their customers have lower switching costs or expect more disruption. Suppliers that are more dependent on the affected firms facilitate the trade credit extension. However, when financial constraints at the affected firms and their suppliers prevent the increase in trade credit, customers sever their relationships with the affected firms, and the sales of the affected firms and their suppliers drop, suggesting that trade credit enhances production network stability.