The Impact of Working Capital Financing Costs on the Efficiency of Trade Credit

• 成果类型: Article
• 署名作者: Devalkar, Sripad K.; Krishnan, Harish
• 署名单位: Indian School of Business (ISB); University of British Columbia
• 刊物名称: PRODUCTION AND OPERATIONS MANAGEMENT
• ISSN/ISSBN: 1059-1478
• DOI: 10.1111/poms.12954
• 发表日期: 2019
• 页码: 878-889
• 关键词: trade credit; moral hazard; Supply Chain Finance; reverse factoring

摘要

We consider how trade credit can coordinate a two-echelon supply chain in the presence of supplier moral hazard and costly working capital financing. While trade credit resolves moral hazard problems in the absence of working capital financing costs, we show that this is not necessarily true when financial frictions make financing trade credit costly. We then show that trade credit along with an appropriately designed reverse factoring program can restore supply chain efficiency.