Trade Credit Borrowing Amidst the COVID-19 Pandemic: Evidence From Turkish Publicly Traded Firms

Bahadır Karakoç
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Bahadır Karakoç: Samsun University

Journal of Finance Letters (Maliye ve Finans Yazıları), 2024, vol. 39, issue 122, 110-133

Abstract: This study focuses on the effects of the COVID-19 pandemic on trade credit borrowing among publicly traded Turkish firms. Changes in the amount and duration of trade credit utilized by firms during the pandemic are investigated using panel data analysis, including Difference Generalized Method of Moments (GMM) and Fixed Effects Ordinary Least Squares (FE-OLS) methods. The findings reveal a significant increase in both the amount and duration of trade credit obtained from suppliers amidst the pandemic's economic disruptions. This trend is particularly pronounced among high-debt and low-cash firms, suggesting a heightened reliance on trade credit as a financing mechanism.

Keywords: Covid-19 pandemic; crisis; trade credit (search for similar items in EconPapers)
JEL-codes: G30 G31 G32 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:acc:malfin:v:39:y:2024:i:122:p:110-133

DOI: 10.33203/mfy.1476916

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