Firms as liquidity providers: Evidence from the 2007-2008 financial crisis

• 成果类型: Article
• 署名作者: Garcia-Appendini, Emilia; Montoriol-Garriga, Judit
• 署名单位: University of St Gallen; Autonomous University of Barcelona
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2013.02.010
• 发表日期: 2013
• 页码: 272-291
• 关键词: trade credit; Corporate liquidity; CRISIS; financial constraints; liquidity

摘要

Using a supplier-client matched sample, we study the effect of the 2007-2008 financial crisis on between-firm liquidity provision. Consistent with a causal effect of a negative shock to bank credit, we find that firms with high precrisis liquidity levels increased the trade credit extended to other corporations and subsequently experienced better performance as compared with ex ante cash-poor firms. Trade credit taken by constrained firms increased during this period. These findings are consistent with firms providing liquidity insurance to their clients when bank credit is scarce and offer an important precautionary savings motive for accumulating cash reserves. (C) 2013 Elsevier B.V. All rights reserved.