Trade credit and profitability in production networks

• 成果类型: Article
• 署名作者: Gofman, Michael; Wu, Youchang
• 署名单位: University of Rochester; University of Oregon
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2021.05.054
• 发表日期: 2022
• 页码: 593-618
• 关键词: trade credit; Supply chains; production networks; profitability

摘要

We construct a sample of over 20 0,0 0 0 supply chains between 2003 and 2018 to conduct a chain-based analysis of trade credit. Our study uncovers novel stylized facts about trade credit both within and across supply chains. More upstream firms borrow more from suppliers, lend more to customers, and hold more net trade credit. This upstreamness effect in trade credit is weaker for more profitable firms and for longer chains. Firms in more central or more profitable chains provide more net trade credit. Our results are generally consistent with the recursive moral hazard theory of trade credit. Evidence for the financing advantage theory is mixed. (c) 2021 Elsevier B.V. All rights reserved.