Read Books Online and Download eBooks, EPub, PDF, Mobi, Kindle, Text Full Free.
Does Trade Credit Facilitate Access To Bank Finance An Empirical Evidence From Portuguese And Spanish Small Medium Size Enterprises
Download Does Trade Credit Facilitate Access To Bank Finance An Empirical Evidence From Portuguese And Spanish Small Medium Size Enterprises full books in PDF, epub, and Kindle. Read online Does Trade Credit Facilitate Access To Bank Finance An Empirical Evidence From Portuguese And Spanish Small Medium Size Enterprises ebook anywhere anytime directly on your device. Fast Download speed and no annoying ads. We cannot guarantee that every ebooks is available!
Book Synopsis Does Trade Credit Facilitate Access to Bank Finance? Empirical Evidence from Portuguese and Spanish Small Medium Size Enterprises by : Ana Paula Matias Gama
Download or read book Does Trade Credit Facilitate Access to Bank Finance? Empirical Evidence from Portuguese and Spanish Small Medium Size Enterprises written by Ana Paula Matias Gama and published by . This book was released on 2016 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines if trade credit is as a substitute and/or a complement to bank credit in order to assess the existence of credit rationing. Using a panel dataset of 468 and 7019 Portuguese and Spanish small medium size enterprises for the period 1998-2006, and controlling for endogeneity problems by using GMM estimators, the results confirm the existence of credit rationing, since the substitution hypothesis is confirmed. This effect is particularly strong for firms that maintaining an exclusive relationship with one bank, which indicate a greater severity of adverse selection problems for those firms. Although the substitution hypothesis is confirmed, the results also indicate that the substitution and complementary hypothesis are not mutually exclusive, especially for a specific group of firms: the younger and smaller firms. In line with the theories that emphasize the informational role of trade credit, due the informative advantage of suppliers, our empirical results confirm that trade credit allow the younger and smaller firms to improve their reputation, as trade credit reveals the private information of the supplier to the bank, in turn, banks can update their beliefs about customer default risk and agree to increase bank credit.
Book Synopsis Does Trade Credit Facilitate Access to Bank Finance? An Empirical Evidence from Portuguese and Spanish Small Medium Size Enterprises by : Ana Paula Matias Gama
Download or read book Does Trade Credit Facilitate Access to Bank Finance? An Empirical Evidence from Portuguese and Spanish Small Medium Size Enterprises written by Ana Paula Matias Gama and published by . This book was released on 2013 with total page 23 pages. Available in PDF, EPUB and Kindle. Book excerpt: To assess the existence of credit rationing, we examine if trade credit is a substitute and/or a complement to bank credit. Using a data set of Portuguese and Spanish small and medium sized enterprises, and controlling for endogeneity problems by using GMM estimators, our results confirm the existence of credit rationing. This effect is particularly strong for firms that maintain an exclusive relationship with one bank, which indicate a greater severity of adverse selection problems for those firms. However, our results indicate that the substitution and complementary hypothesis are not mutually exclusive, especially for the younger and smaller firms.
Book Synopsis When Trade Credit Facilitates Access to Bank Finance by : Eric Severin
Download or read book When Trade Credit Facilitates Access to Bank Finance written by Eric Severin and published by . This book was released on 2004 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: While trade credit is traditionally considered as a substitute for bank loans, recent theoretical papers (e.g. Biais and Gollier (1997)) suggest that bank debt and trade credit can also be considered as two complementary sources of financing. By using US small businesses data (NSSBF 1998), this paper provides an empirical analysis of these hypotheses. The empirical findings are consistent with the hypothesis that trade credit helps firms to improve their reputation. The results show that trade credit can work as a signal about firm's quality and thus facilitates access to bank debt.Keywords: Bank, Trade credit, Informational asymetry.
Book Synopsis Customer Market Power and the Provision of Trade Credit by : Neeltje van Horen
Download or read book Customer Market Power and the Provision of Trade Credit written by Neeltje van Horen and published by World Bank Publications. This book was released on 2007 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt: Statistics show that the sale of goods on credit is widespread among firms even when they are capital constrained and thus face relatively high costs in providing trade credit. This study provides an explanation for this by arguing that customers who possess strong market power are able to increase their customer surplus by demanding to purchase the goods on credit. This gain in customer surplus increases with the degree of asymmetric information between buyer and seller with respect to product quality. Therefore, firms that are perceived as risky are especially subject to the market power of the customer and have to sell their goods on credit. Using detailed firm-level data from a large number of firms in Eastern Europe and Central Asia, this study finds evidence consistent with this hypothesis. It finds a strong positive correlation between customer market power and trade credit provision. Furthermore, this relationship is especially strong when the supplier is more risky and in countries with limited financial sector development or a weak legal system.
Book Synopsis Trade Credit and Bank Credit by : Inessa Love
Download or read book Trade Credit and Bank Credit written by Inessa Love and published by World Bank Publications. This book was released on 2005 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: "The authors study the effect of financial crises on trade credit in a sample of 890 firms in six emerging economies. They find that although provision of trade credit increases right after the crisis, it consequently collapses in the following months and years. The authors observe that firms with weaker financial position (for example, high pre-crisis level of short-term debt and low cash stocks and cash flows) are more likely to reduce trade credit provided to their customers. This suggests that the decline in aggregate credit provision is driven by the reduction in the supply of trade credit, which follows the bank credit crunch. The results are consistent with the "redistribution view" of trade credit provision, in which bank credit is redistributed by way of trade credit by the firms with stronger financial position to the firms with weaker financial stand "--World Bank web site.
Book Synopsis Does Trade Credit Substitute Bank Credit? Evidence From Firm-Level Data by : Mr.Guido De Blasio
Download or read book Does Trade Credit Substitute Bank Credit? Evidence From Firm-Level Data written by Mr.Guido De Blasio and published by International Monetary Fund. This book was released on 2003-08-01 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper examines micro data on Italian manufacturing firms' inventory behavior to test the Meltzer (1960) hypothesis according to which firms substitute trade credit for bank credit during periods of monetary tightening. It finds that their inventory investment is constrained by the availability of trade credit. As for the magnitude of the substitution effect, however, this study finds that it is not sizable. This is in line with the micro theories of trade credit and the evidence on actual firm practices, according to which credit terms display modest variations over time.
Book Synopsis Bank Credit and Trade Credit by : Gerard McGuinness
Download or read book Bank Credit and Trade Credit written by Gerard McGuinness and published by . This book was released on 2016 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper uses panel data to test the extent to which trade credit has acted as a substitute for bank finance in Small and Medium Sized Enterprises (SMEs), in the aftermath of the financial crisis of 2008. It demonstrates that the reduction in the supply of funds to SMEs was compounded by the contraction of net trade credit within the sector. Nevertheless, trade credit played a vital role in the adjustment of the sector by easing the burden of financial crisis for some SMEs. Thus, the relative importance of trade credit increased for financially 'vulnerable' SMEs that were less liquid, highly dependent on short-term bank finance, and with a higher proportion of intangible assets, when entering the crisis. In terms of a redistribution effect; financially stronger firms extended relatively more trade credit, most likely, to financially vulnerable SMEs in aftermath of the financial crisis. In addition, the analysis demonstrates that the financial position of SMEs entering the crisis was more important in determining the impact of the financial crisis on trade credit than company characteristics of age and size.
Book Synopsis Trade Credit and the Effect of Macro-Financial Shocks by : Mr.Yungsan Kim
Download or read book Trade Credit and the Effect of Macro-Financial Shocks written by Mr.Yungsan Kim and published by International Monetary Fund. This book was released on 2003-06-01 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: Many studies examine why firms are financed by their suppliers, but few empirical studies look at the macroeconomic implications of such financial arrangements. Using disaggregated panel data, we examine how firms extend and use trade credit. We find that, controlling for the transactions or asset management motive, both accounts payable and receivable increase with tighter policy, implying that trade credit helps firms absorb the effect of a credit contraction. A comparison of S&P 500 firms with smaller firms, however, provides no evidence that when policy is tightened, large firms play the role of credit suppliers more actively than small firms.
Book Synopsis Trade Credit and Financing Instruments by : Lucia Gibilaro
Download or read book Trade Credit and Financing Instruments written by Lucia Gibilaro and published by Business Expert Press. This book was released on 2018-12-18 with total page 136 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book offers managers a complete analysis of the various facets of commercial credit and presents an analysis of the various types of markets, instruments, and risks associated with trade credit in supply chains across the globe. Trade credit is extensively used in both domestic and international commercial transactions. Although it clearly supports growth, its significance is even greater for developed countries, where the market has recovered remarkably since the global financial crisis. The number and heterogeneity of motivations to trade credit justify the variability observed in the data on global trading, and the role of trade credit has become crucial in supply chain coordination. A range of diverse trade credit finance solutions are available and include products and services offered by financial intermediaries and market products, highlighting a very interesting set of intermediate solutions that have emerged as a result of new technologies utilized in financial services. For financiers trade credit is an attractive option, but an in-depth evaluation of the possibility of losses forms the basis of a deep understating of numerous sources that can create credit risk (default and dilution risk). This book offers managers a complete analysis of the various facets of commercial credit and presents an analysis of the various types of markets, instruments, and risks associated with trade credit in supply chains across the globe.
Book Synopsis Financial and Non-Financial Determinants of Access to Bank Credit by : Tobias Odongo
Download or read book Financial and Non-Financial Determinants of Access to Bank Credit written by Tobias Odongo and published by LAP Lambert Academic Publishing. This book was released on 2013 with total page 116 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book examines the various factors of credit worthiness in order to assess their influence on access to bank credit by small and medium sized enterprises (SMEs). Finance has been identified in many business surveys as one of the most important factors determining the survival and growth of SMEs in both developing and developed countries. Access to finance enables SMEs to participate in productive investments, thus ensuring their competitiveness and that of the nation as a whole. Despite their dominant numbers and importance in job creation, small and medium enterprises often face difficulty in obtaining bank credit. A review of the literature on financing small and medium sized enterprises shows that there is a gap in knowledge of the determinants of access to bank finance by the SMEs in developing countries such as Kenya. Most studies are limited in scope. Therefore, this study investigated both financial and non financial factors which determine access to bank credit by SMEs in Kenya.
Book Synopsis Trade credit, financial intermediary development, and industry growth by : Raymond Fisman
Download or read book Trade credit, financial intermediary development, and industry growth written by Raymond Fisman and published by World Bank Publications. This book was released on 2001 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: Where do firms turn for financing in countries with poorly developed financial markets? One source is trade credit. And where formal financial intermediaries are deficient, industries that rely more on this source of financing grow faster.
Book Synopsis UNCITRAL Model Law on Secured Transactions by : United Nations Commission on International Trade Law
Download or read book UNCITRAL Model Law on Secured Transactions written by United Nations Commission on International Trade Law and published by . This book was released on 2016 with total page 96 pages. Available in PDF, EPUB and Kindle. Book excerpt: The "Model Law" deals with security interests in all types of tangible and intangible movable property, such as goods, receivables, bank accounts, negotiable instruments, negotiable documents,
Book Synopsis Small-business Access to Trade Credit by : Daniel Aaronson
Download or read book Small-business Access to Trade Credit written by Daniel Aaronson and published by . This book was released on 2000 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Trade Credit by : Mitchell A. Petersen
Download or read book Trade Credit written by Mitchell A. Petersen and published by . This book was released on 1998 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: In addition to borrowing from financial institutions, firms may be financed by their suppliers. Although there are many theories explaining why non financial firms lend money, there are few comprehensive empirical tests of these theories. This paper attempts to fill the gap. We focus on a sample of small firms whose access to capital markets may be limited. We find evidence that firms use trade credit relatively more when credit from financial institutions is not available. Thus while short term trade credit may be routinely used to minimize transactions costs, medium term borrowing against trade credit is a form of financing of last resort. Suppliers lend to firms no one else lends to because they may have a comparative advantage in getting information about buyers cheaply, they may have a better ability to liquidate goods, and they may have a greater implicit equity stake in the firm's long term survival. We find some evidence that trade credit is used as a means of price discrimination. Finally, we find that firms with better access to credit from financial institutions offer more trade credit. This supports the view that trade credit may be a channel through which monetary policy affects firms outside the banking system.
Book Synopsis Bank Debt and Trade Credit for SMEs by : Guillaume Andrieu
Download or read book Bank Debt and Trade Credit for SMEs written by Guillaume Andrieu and published by . This book was released on 2015 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the links between firm age, firm size and the ability to obtain capital in a sample of European SMEs. The results indicate that age and size are positively linked to debt capacity. Furthermore, our analysis reveals that it is crucial to distinguish between bank debt financing and trade credit. Young and small firms are more subject to denial due to the higher moral hazard they represent for a bank. Only very young firms are more constrained for trade credit. The results of simultaneous analysis show that trade credit is positively related to bank credit financing, thus providing empirical support for the complementarity of these forms of financing.
Book Synopsis Financial Inclusion of Small and Medium-Sized Enterprises in the Middle East and Central Asia by : Mr.Nicolas R Blancher
Download or read book Financial Inclusion of Small and Medium-Sized Enterprises in the Middle East and Central Asia written by Mr.Nicolas R Blancher and published by International Monetary Fund. This book was released on 2019-02-12 with total page 73 pages. Available in PDF, EPUB and Kindle. Book excerpt: The importance of financial inclusion is increasingly recognized by policymakers around the world. Small and medium-sized enterprise (SME) financial inclusion, in particular, is at the core of the economic diversification and growth challenges many countries are facing. In the Middle East and Central Asia (MENAP and CCA) regions, SMEs represent an important share of firms, but the regions lag most others in terms of SME access to financing.
Download or read book Doing Business 2020 written by World Bank and published by World Bank Publications. This book was released on 2019-11-21 with total page 241 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seventeen in a series of annual reports comparing business regulation in 190 economies, Doing Business 2020 measures aspects of regulation affecting 10 areas of everyday business activity.
