Trade credit and the joint effects of supplier and customer financial characteristics

Persistent Link:
http://hdl.handle.net/10150/623187
Title:
Trade credit and the joint effects of supplier and customer financial characteristics
Author:
Shenoy, Jaideep; Williams, Ryan
Affiliation:
Univ Arizona, Eller Coll Management
Issue Date:
2017-01
Publisher:
ACADEMIC PRESS INC ELSEVIER SCIENCE
Citation:
Trade credit and the joint effects of supplier and customer financial characteristics 2017, 29:68 Journal of Financial Intermediation
Journal:
Journal of Financial Intermediation
Rights:
© 2015 Elsevier Inc. All rights reserved.
Collection Information:
This item from the UA Faculty Publications collection is made available by the University of Arizona with support from the University of Arizona Libraries. If you have questions, please contact us at repository@u.library.arizona.edu.
Abstract:
We examine how access to bank credit affects trade credit in the supplier-customer relationships of U.S. public firms. For identification, we use exogenous liquidity shocks to supplier firms in the form of staggered changes to interstate bank branching laws. Using a variety of tests, we show that supplier firms with greater access to banking liquidity offer more trade credit to their customers. We also show that when bank branching restrictions are relaxed in the supplier's state, the supplier-customer relationship is more likely to survive. (C) 2015 Elsevier Inc. All rights reserved.
Note:
36 month embargo; Available online 7 September 2015
ISSN:
10429573
DOI:
10.1016/j.jfi.2015.09.001
Keywords:
Trade credit; Supplier-customer relationships; Bank lines of credit; Banking deregulation; Contagion; Financial distress
Version:
Final accepted manuscript
Sponsors:
Center for the Economic Analysis of Risk (CEAR); Max Burns Fellowship
Additional Links:
http://linkinghub.elsevier.com/retrieve/pii/S104295731500039X

Full metadata record

DC FieldValue Language
dc.contributor.authorShenoy, Jaideepen
dc.contributor.authorWilliams, Ryanen
dc.date.accessioned2017-04-21T00:44:43Z-
dc.date.available2017-04-21T00:44:43Z-
dc.date.issued2017-01-
dc.identifier.citationTrade credit and the joint effects of supplier and customer financial characteristics 2017, 29:68 Journal of Financial Intermediationen
dc.identifier.issn10429573-
dc.identifier.doi10.1016/j.jfi.2015.09.001-
dc.identifier.urihttp://hdl.handle.net/10150/623187-
dc.description.abstractWe examine how access to bank credit affects trade credit in the supplier-customer relationships of U.S. public firms. For identification, we use exogenous liquidity shocks to supplier firms in the form of staggered changes to interstate bank branching laws. Using a variety of tests, we show that supplier firms with greater access to banking liquidity offer more trade credit to their customers. We also show that when bank branching restrictions are relaxed in the supplier's state, the supplier-customer relationship is more likely to survive. (C) 2015 Elsevier Inc. All rights reserved.en
dc.description.sponsorshipCenter for the Economic Analysis of Risk (CEAR); Max Burns Fellowshipen
dc.language.isoenen
dc.publisherACADEMIC PRESS INC ELSEVIER SCIENCEen
dc.relation.urlhttp://linkinghub.elsevier.com/retrieve/pii/S104295731500039Xen
dc.rights© 2015 Elsevier Inc. All rights reserved.en
dc.subjectTrade crediten
dc.subjectSupplier-customer relationshipsen
dc.subjectBank lines of crediten
dc.subjectBanking deregulationen
dc.subjectContagionen
dc.subjectFinancial distressen
dc.titleTrade credit and the joint effects of supplier and customer financial characteristicsen
dc.typeArticleen
dc.contributor.departmentUniv Arizona, Eller Coll Managementen
dc.identifier.journalJournal of Financial Intermediationen
dc.description.note36 month embargo; Available online 7 September 2015en
dc.description.collectioninformationThis item from the UA Faculty Publications collection is made available by the University of Arizona with support from the University of Arizona Libraries. If you have questions, please contact us at repository@u.library.arizona.edu.en
dc.eprint.versionFinal accepted manuscripten
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