National culture and small firms' use of trade credit: Evidence from Europe

Andrea Moro, Yacine Belghitar and Cesario Mateus

Global Finance Journal, 2021, vol. 49, issue C

Abstract: We examine the use of trade credit in Western Europe by relying on a sample of 182,296 small firms for the period 2003–2013. Building on information asymmetry theory, we explore how a country's culture can impact SMEs use of trade credit. We discover that countries' cultural norms play a key role in explaining trade credit differences in Europe. We find that in countries with high power distance, high individualism, high masculinity, and high uncertainty avoidance rely more on trade credit.

Keywords: Trade credit; Culture; SMEs; Bank credit; Financial flexibility (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:glofin:v:49:y:2021:i:c:s1044028321000533

DOI: 10.1016/j.gfj.2021.100655

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