Relationship lending and the use of trade credit: the role of relational capital and private information

Pierluigi Murro and Valentina Peruzzi

No 2006, Working Papers CASMEF from Dipartimento di Economia e Finanza, LUISS Guido Carli

Abstract: Using a unique sample of Italian manufacturing firms, we investigate the impact of relationship lending on firms' use of trade credit. We find that firms with close and long-lasting relationships with their main bank obtain higher amounts of trade credit. This result is robust to alternative definitions of trade credit and relationship lending, and to different estimation techniques. This positive link is especially strong for firms that use to provide soft information to their lenders and for companies with greater abilities to create valuable relationships with business parties.

Keywords: Trade credit; relationship lending; soft information (search for similar items in EconPapers)
JEL-codes: D22 G21 G32 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2020-11
New Economics Papers: this item is included in nep-cfn and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.luiss.it/sites/default/files//2023-12/2006_wp.pdf (application/pdf)

Related works:
Journal Article: Relationship lending and the use of trade credit: the role of relational capital and private information (2022)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:lui:casmef:2006

Access Statistics for this paper

More papers in Working Papers CASMEF from Dipartimento di Economia e Finanza, LUISS Guido Carli Contact information at EDIRC.
Bibliographic data for series maintained by Pierluigi Murro ().