Trade credit, collateral liquidation, and borrowing constraints

• 成果类型: Article
• 署名作者: Fabbri, Daniela; Menichini, Anna Maria C.
• 署名单位: University of Amsterdam; University of Salerno
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2010.02.010
• 发表日期: 2010
• 页码: 413-432
• 关键词: trade credit; collateral; financial constraints; Asset tangibility; Creditor protection

摘要

Assuming that firms' suppliers are better able to extract value from the liquidation of assets in default and have an information advantage over other creditors, the paper derives six predictions on the use of trade credit. (1) Financially unconstrained firms (with unused bank credit lines) take trade credit to exploit the supplier's liquidation advantage. (2) If inputs purchased on account are sufficiently liquid, the reliance on trade credit does not depend on credit rationing. (3) Firms buying goods make more purchases on account than those buying services, while suppliers of services offer more trade credit than those of standardized goods. (4) Suppliers lend inputs to their customers but not cash. (5) Greater reliance on trade credit is associated with more intensive use of tangible inputs. (6) Better creditor protection decreases both the use of trade credit and input tangibility. (C) 2010 Elsevier B.V. All rights reserved.