Trade Credit and Industry Dynamics: Evidence from Trucking Firms

• 成果类型: Article
• 署名作者: Barrot, Jean-Noel
• 署名单位: Massachusetts Institute of Technology (MIT); Center for Economic & Policy Research (CEPR)
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/jofi.12371
• 发表日期: 2016
• 页码: 1975-2015
• 关键词: internal capital-markets; ON-BOARD COMPUTERS; liquidity constraints; financing constraints; supermarket industry; corporate-investment; empirical-analysis; asset ownership; product quality; COMPETITION

摘要

Long payment terms are a strong impediment to the entry and survival of liquidity-constrained firms. To test this idea and its implications, I consider the effect of a reform restricting the trade credit supply of French trucking firms. In a difference-in-differences setting, I find that trucking firms' corporate default probability decreases by 25% following the restriction. The effect is persistent, concentrated among liquidity-constrained firms, and not offset by a decrease in profits. The restriction also triggers an increase in the entry of small trucking firms.