Customer financing, bargaining power and trade credit uptake

Simona Mateut and Thanaset Chevapatrakul ()

No 2016/04, Discussion Papers from University of Nottingham, Centre for Finance, Credit and Macroeconomics (CFCM)

Abstract: We employ a panel quantile regression technique to investigate different theories explaining trade credit taken by firms. Consistent with the financing theory, our results suggest that the substitution between trade credit and bank loans increases at higher quantiles and it is stronger for larger firms with better access to external finance. Firms with a high market share operating in less concentrated industries have higher account payables to assets ratios, supporting the customer bargaining power theory.

Keywords: trade credit; bargaining power; panel quantile regression (search for similar items in EconPapers)
Date: 2016
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https://www.nottingham.ac.uk/cfcm/documents/papers/cfcm-2017-04.pdf Revised Version 2017-04 (application/pdf)

Related works:
Journal Article: Customer financing, bargaining power and trade credit uptake (2018)
Working Paper: Customer financing, bargaining power and trade credit uptake (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:not:notcfc:16/04

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