An agency model to explain trade credit policy and empirical evidence

References

• Alphonse, P., Ducret, J., Eric, S., (2004) When trade credit facilitates access to bank finance: evidence from US small business data, EFMA 2004 Basel Meetings Paper
   Google Scholar
• Bevan , AA and Danbolt , J . 2002 . Capital structure and its determinants in the UK–a decompositional analysis . Applied Financial Economics , 12 : 159 – 70 .
   Google Scholar
• Brick , IE and Fung , WKH . 1984 . Taxes and the theory of trade debt . Journal of Finance , 39 : 1169 – 76 .
   Web of Science ®Google Scholar
• Burkart , M and Ellingsen , T . 2004 . In-kind finance: a theory of trade credit . American Economic Review , 94 : 569 – 90 .
   Web of Science ®Google Scholar
• Danielson , MG and Scott , JA . 2004 . Bank loan availability and trade credit demand . Financial Review , 39 : 579 – 600 .
   Google Scholar
• Deloof , M and Jegers , M . 1996 . Trade credit, product quality, and intragroup trade: some European evidence . Financial Management , 25 : 33 – 43 .
   Web of Science ®Google Scholar
• Deloof , M and Jegers , M . 1999 . Trade credit, corporate groups, and the financing of Belgian firms . Journal of Business Finance & Accounting , 26 : 945 – 67 .
   Google Scholar
• Emery , GW . 1984 . A pure financial explanation for trade credit . Journal of Financial and Quantitative Analysis , 19 : 271 – 85 .
   Web of Science ®Google Scholar
• Emery , GW . 1987 . An optimal financial response to variable demand . Journal of Financial and Quantitative Analysis , 22 : 209 – 25 .
   Web of Science ®Google Scholar
• Fazzari , S , Hubbard , G and Petersen , B . 1988 . Financing constraints and corporate investment . Brooking Papers on Economic Activity , 1 : 141 – 95 .
   Google Scholar
• Fazzari , S , Hubbard , G and Petersen , B . 2000 . Investment-cash flow sensitivities are useful: a comment on Kaplan and Zingales . The Quarterly Journal of Economics , 115 : 695 – 705 .
   Web of Science ®Google Scholar
• Ferris , JS . 1981 . A transactions theory of trade credit use . Quarterly Journal of Economics , 96 : 243 – 70 .
   Web of Science ®Google Scholar
• Frank, M. and Maksimovic, V., (1998) Trade credit, collateral, and adverse selection SSRN. Working Paper, No. 87868, SSRN
   Google Scholar
• Jensen , MC and Meckling , WH . 1976 . Theory of the firm: managerial behavior agency costs and ownership structure . Journal of Financial Economics , 3 : 305 – 60 .
   Web of Science ®Google Scholar
• Kandori , M . 1992 . Social norms and community enforcement . Review of Economic Studies , 59 : 63 – 80 .
   Web of Science ®Google Scholar
• Kaplan , SN and Zingales , L . 1997 . Do investment-cash flow sensitivities provide useful measures of financing constraints? . The Quarterly Journal of Economics , 112 : 169 – 215 .
   Web of Science ®Google Scholar
• Lee , YW and Stowe , JD . 1993 . Product risk, asymmetric information, and trade credit . Journal of Financial and Quantitative Analysis , 28 : 285 – 300 .
   Web of Science ®Google Scholar
• Long , MS , Malitz , IB and Ravid , SA . 1993 . Trade credit, quality guarantees, and product marketability . Financial Management , 22 : 117 – 27 .
   Web of Science ®Google Scholar
• Marotta , G . 2005 . When do trade credit discounts matter? Evidence from Italian firm-level data . Applied Economics , 37 : 403 – 16 .
   Web of Science ®Google Scholar
• McMillan , J and Woodruff , C . 1999 . Interfirm relationships and informal credit in Vietnam . The Quarterly Journal of Economics , 114 : 1285 – 320 .
   Web of Science ®Google Scholar
• Mian , SL and Smith , CW . 1992 . Accounts receivables management policy: theory and evidence . Journal of Finance , 47 : 169 – 200 .
   Web of Science ®Google Scholar
• Moulton , B . 1986 . Random group effects and the precision of regression estimates . Journal of Econometrics , 32 : 385 – 97 .
   Web of Science ®Google Scholar
• Moulton , B . 1987 . Diagnostics for group effects in regression analysis . Journal of Business and Economic Statistics , 5 : 275 – 82 .
   Web of Science ®Google Scholar
• Ng , CK , Smith , JK and Smith , RL . 1999 . Evidence on the determinants of credit terms used in interfirm trade . Journal of Finance , 54 : 1109 – 30 .
   Web of Science ®Google Scholar
• Nilsen , J . 2002 . Trade credit and the bank lending channel . Journal of Money, Credit, and Banking , 34 : 226 – 53 .
   Web of Science ®Google Scholar
• Niskanen , J and Niskanen , M . 2006 . The determinants of corporate trade credit policies in a bank-dominated financial environment. The case of Finnish small firms . European Financial Management , 12 : 81 – 102 .
   Web of Science ®Google Scholar
• Oh , JS . 1976 . Opportunity cost in the evaluation of investment in accounts receivable . Financial Management , 5 : 32 – 6 .
   Web of Science ®Google Scholar
• Petersen , MA and Rajan , RG . 1994 . The benefits of lending relationships: evidence from small business data . The Journal of Finance , 49 : 3 – 37 .
   Web of Science ®Google Scholar
• Petersen , MA and Rajan , RG . 1995 . The effect of credit market competition on lending relations . The Quartely Journal of Economics , 60 : 407 – 44 .
   Web of Science ®Google Scholar
• Petersen , MA and Rajan , RG . 1997 . Trade credit: theories and evidence . Review of Financial Studies , 10 : 661 – 92 .
   Web of Science ®Google Scholar
• Pike , R , Cheng , NS , Cravens , K and Lamminmaki , D . 2005 . Trade credit terms: asymmetric information and price discrimination evidence from three continents . Journal of Business Finance & Accounting , 32 : 1197 – 236 .
   Web of Science ®Google Scholar
• Pindado , J , Rodrigues , L and de la Torre , C . 2006 . How does financial distress affect small firms financial structure? . Small Business Economics , 26 : 377 – 91 .
   Web of Science ®Google Scholar
• Prowse , SD . 1990 . Institutional investment patterns and corporate financial behavior in the US and Japan . Journal of Financial Economics , 27 : 43 – 66 .
   Web of Science ®Google Scholar
• Schwartz , RA . 1974 . An economic model of trade credit . Journal of Financial and Quantitative Analysis , 9 : 643 – 57 .
   Web of Science ®Google Scholar
• Smith , JK . 1987 . Trade credit and informational asymmetry . Journal of Finance , 42 : 863 – 72 .
   Web of Science ®Google Scholar
• Titman , S and Wessels , R . 1988 . The determinants of capital structure choice . Journal of Finance , 43 : 1 – 19 .
   Web of Science ®Google Scholar
• Wei , P and Zee , SML . 1997 . Trade credit as quality signal: an international comparison . Managerial Finance , 23 : 63 – 72 .
   Google Scholar