Prague Economic Papers 2019, 28(3):330-347 | DOI: 10.18267/j.pep.696

Determinants of Net Trade Credit: A Panel VAR Approach Based on Industry

Mara Madalenoa, Nicoleta Bărbuţă-Mişub, Fitim Dearic
a GOVCOPP - Research Unit in Governance, Competitiveness and Public Policy and University of Aveiro, Portugal
b "Dunarea de Jos" University of Galati, Romania
c South East European University, Republic of Macedonia

This paper aims to study the dynamic relationship between dependent variables of trade credit (net trade credit to total assets and net trade credit to sales), and six independent variables (profit margin, liquidity ratio, and the dummies collection, credit, size, and crisis) using panel vector autoregression during the period 2004-2013 considering data from eight European countries. The results indicate that net trade credit is negatively influenced by crises, forcing firms to use it less due to survival effects but imposing higher trade restrictions. Notwithstanding, net trade credit to sales is positively influenced by the liquidity ratio and profit margin, and vice-versa, but has a negative relationship with credit and collection dummies, imposing credit shortenings and forcing reliance on short-term credit. For the overall period, firms seem to have sold more than having bought on credit due to tightening trade credit, an effect of the financial crisis.

Klíčová slova: panel vector autoregression, profit margin, liquidity ratio, collection period, credit period, financial crisis
JEL classification: G01, G30, G32

Vloženo: 31. červenec 2017; Přijato: 30. duben 2018; Zveřejněno: 10. červenec 2019  Zobrazit citaci

ACS AIP APA ASA Harvard Chicago Chicago Notes IEEE ISO690 MLA NLM Turabian Vancouver
Madaleno, M., Bărbuţă-Mişu, N., & Deari, F. (2019). Determinants of Net Trade Credit: A Panel VAR Approach Based on Industry. Prague Economic Papers, 28(3), 330-347. doi: 10.18267/j.pep.696
Stáhnout citaci
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Zobrazit celý článek

    Reference

    1. Abrigo, M. R. M., Love, I. (2015). Estimation of Panel Vector Autoregression in Stata: A Package of Programs. University of Hawai'i at Manoa. Working Paper No. 16-2. [Retrieved 2016-11-29] Available at: http://www.economics.hawaii.edu/research/workingpapers/WP_16-02.pdf
    2. Altunok, F. (2012). Three Essays of Trade Credit. North Carolina State University.
    3. Bureau van Dijk (2015). Amadeus Database. Bratislava, Slovakia.
    4. Baños-Caballero, S., García-Teruel, J. P., Martínez-Solano, P. (2014). Working Capital Management, Corporate Performance, and Financial Constraints. Journal of Business Research, 67(3), 332-338, https://doi.org/10.1016/j.jbusres.2013.01.016 Přejít k původnímu zdroji...
    5. Bastos, R., Pindado, J. (2013). Trade Credit During a Financial Crisis: A Panel Data Analysis. Journal of Business Research, 66(5), 614-620, https://doi.org/10.1016/j.jbusres.2012.03.015 Přejít k původnímu zdroji...
    6. Berger, P. G., Ofek, E. (1995). Diversification's Effect on Firm Value. Journal of Financial Economics, 37(1), 39-65, https://doi.org/10.1016/0304-405X(94)00798-6 Přejít k původnímu zdroji...
    7. Biais, B., Gollier, C. (1997). Trade Credit and Credit Rationing. The Review of Financial Studies, 10(4), 903-937, https://doi.org/10.1093/rfs/10.4.903 Přejít k původnímu zdroji...
    8. Bougheas, S., Mateut, S., Mizen, P. (2009). Corporate Trade Credit and Inventories: New Evidence of a Trade-off from Accounts Payable and Receivable. Journal of Banking & Finance, 33(2), 300-307, https://doi.org/10.1016/j.jbankfin.2008.07.019 Přejít k původnímu zdroji...
    9. Burkart, M., Ellingsen, T. (2004). In-Kind Finance: A Theory of Trade Credit. American Economic Review, 94(3), 569-590, https://doi.org/10.1257/0002828041464579 Přejít k původnímu zdroji...
    10. Cheng, N. S., Pike, R. (2003). The Trade Credit Decision: Evidence of UK Firms. Managerial and Decision Economics, 24(6-7), 419-438, https://doi.org/10.1002/mde.1049 Přejít k původnímu zdroji...
    11. Choi, W. G., Kim, Y. (2005). Trade Credit and the Effect of Macro-Financial Shocks: Evidence from U.S. Panel Data. Journal of Financial and Quantitative Analysis, 40(4), 897-925, https://doi.org/10.1017/s0022109000002027 Přejít k původnímu zdroji...
    12. Coulibaly, B., Sapriza, H., Zlate, A. (2013). Financial Frictions, Trade Credit, and the 2008-09 Global Financial Crisis. International Review of Economics and Finance, 26, 25-38, https://doi.org/10.1016/j.iref.2012.08.006 Přejít k původnímu zdroji...
    13. Cull, R., Xu, C. L., Zhu, T. (2009). Formal Finance and Trade Credit during China's Transition. Journal of Financial Intermediation, 18(2), 173-192, https://doi.org/10.1016/j.jfi.2008.08.004 Přejít k původnímu zdroji...
    14. Cuñat, V. (2007). Trade Credit: Suppliers as Debt Collectors and Insurance Providers. Review of Financial Studies, 20(2), 491-527, https://doi.org/10.1093/rfs/hhl015 Přejít k původnímu zdroji...
    15. Cuñat, V., Garcia-Appendini, E. (2012). Trade Credit and its Role in Entrepreneurial Finance, in Cuñat, V. G.-A., Cumming, D., eds., Oxford Handbook of Entrepreneurial Finance. New York: Oxford University Press, pp. 526-557, https://doi.org/10.1093/oxfordhb/9780195391244.013.0018 Přejít k původnímu zdroji...
    16. de Blasio, G. (2005). Does Trade Credit Substitute for Bank Credit? Evidence from Firm-Level Data, Economic Notes, 34(1), 85-112, https://doi.org/10.1111/j.0391-5026.2005.00145.x Přejít k původnímu zdroji...
    17. Delannay, A. F., Weill, L. (2004). The Determinants of Trade Credit in Transition Countries. Economics of Planning, 37(3-4), 173-193, https://doi.org/10.1007/s10644-005-5062-9 Přejít k původnímu zdroji...
    18. Deloof, M., La Rocca, M. (2015). Local Financial Development and the Trade Credit Policy of Italian SMEs. Small Business Economics, 44(4), 905-924, https://doi.org/10.1007/s11187-014-9617-x Přejít k původnímu zdroji...
    19. Emery, G. (1984). A Pure Financial Explanation for Trade Credit. Journal of Financial and Quantitative Analysis, 19(3), 271-285, https://doi.org/10.2307/2331090 Přejít k původnímu zdroji...
    20. Eurostat (2015). Construction Statistics - NACE Rev. 2. [Retrieved 2016-10-12] Available at: http://ec.europa.eu/eurostat/statistics-explained/index.php/Construction_statistics_-_NACE_Rev._2
    21. Ferrando, A., Mulier, K. (2013). Do Firms Use the Trade Credit Channel to Manage Growth? Journal of Banking and Finance, 37(8), 3035-3046, https://doi.org/10.1016/j.jbankfin.2013.02.013 Přejít k původnímu zdroji...
    22. Ferris, J. (1981). A Transactions Theory of Trade Credit Use. Quarterly Journal of Economics, 96(2), 243-270, https://doi.org/10.2307/1882390 Přejít k původnímu zdroji...
    23. Fisman, R., Love, I. (2003). Trade Credit, Financial Intermediary Development and Industry Growth. Journal of Finance, 58(1), 353-374, https://doi.org/10.1111/1540-6261.00527 Přejít k původnímu zdroji...
    24. García-Teruel, P. J., Martínez-Solano, P. (2010). Determinants of Trade Credit: A Comparative Study of European SMEs. International Small Business Journal, 28(3), 215-233, https://doi.org/10.1177/0266242609360603 Přejít k původnímu zdroji...
    25. Gonçalves, A. B., Schiozer, R., Sheng, H. H. (2016). Trade Credit during Financial Crisis: Do Market Power and Financial Constraints Matter? [Retrieved 2016-11-17] Available at: http://doi.org/10.2139/ssrn.2723504 Přejít k původnímu zdroji...
    26. Hill, M. D., Kelly, G. W., Lockhart, G. B., Washam, J. O. (2010). Trade Credit, Market Value, and Product Market Dynamics. New York: FMA.
    27. Kohler, M., Britton, E., Yates, T. (2000). Trade Credit and the Monetary Transmission Mechanism. Bank of England. London Working Paper No. 115, https://doi.org/10.2139/ssrn.234693 Přejít k původnímu zdroji...
    28. Lang, L. H., Stulz, R. M. (1994). Tobin´s q, Corporate Diversification, and Firm Performance. Journal of Political Economy, 102(6), 1248-1280, https://doi.org/10.1086/261970 Přejít k původnímu zdroji...
    29. Love, I., Ziccino, L. (2006). Financial Development and Dynamic Investment Behavior: Evidence from Panel VAR. The Quarterly Review of Economics and Finance, 46(2), 190-210, https://doi.org/10.1016/j.qref.2005.11.007 Přejít k původnímu zdroji...
    30. Love, I., Preve, L. A., Sarria-Allende, V. (2007). Trade Credit and Bank Credit: Evidence from Recent Financial Crises. Journal of Financial Economics, 83(2), 453-469, https://doi.org/10.1016/j.jfineco.2005.11.002 Přejít k původnímu zdroji...
    31. Marotta, G. (2005). When do Trade Credit Discounts Matter? Evidence from Italian Firm-level Data. Applied Economics, 37(4), 403-416, https://doi.org/10.1080/0003684042000329063 Přejít k původnímu zdroji...
    32. Martínez-Sola, C., García-Teruel, J. P., Martínez-Solano, P. (2014). Trade Credit and SME Profitability. Small Business Economics, 42(3), 561-577, https://doi.org/10.1007/s11187-013-9491-y Přejít k původnímu zdroji...
    33. Masanori, O. (2001). Determinants of Trade Credit in the Japanese Manufacturing Sector. Journal of the Japanese and International Economies, 15(2), 160-177, https://doi.org/10.1006/jjie.2001.0466 Přejít k původnímu zdroji...
    34. McGuinness, G., Hogan, T. (2016). Bank Credit and Trade Credit: Evidence from SMEs Over the Financial Crisis. International Small Business Journal, 34(4), 412-445, https://doi.org/10.1177/0266242614558314 Přejít k původnímu zdroji...
    35. Meltzer, A. (1960). Mercantile Credit, Monetary Policy, and Size of Firms. Review of Economics and Statistics, 42(4), 429-437, https://doi.org/10.2307/1925692 Přejít k původnímu zdroji...
    36. Ng, K. C., Smith, J. K., Smith, L. R. (1999). Evidence on the Determinants of Credit Terms Used in Interfirm Trade. The Journal of Finance, 54(3), 1109-1129, https://doi.org/10.1111/0022-1082.00138 Přejít k původnímu zdroji...
    37. Niskanen, J., 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(1), 81-102, https://doi.org/10.1111/j.1354-7798.2006.00311.x Přejít k původnímu zdroji...
    38. Petersen, M. A., Rajan, R. G. (2007). Trade Credit: Theories and Evidence. Review of Financial Studies, 10(3), 661-669, https://doi.org/10.1093/rfs/10.3.661 Přejít k původnímu zdroji...
    39. Rajendra, V. R. (2011). The Determinants of Trade Credit: Evidence from Indian Manufacturing Firms. Mumbai Working Papers No. 012.
    40. Santos, G. A., Sheng, H. H., Bortoluzzo, A. (2012). The Use of Trade Credit by Firms: Evidence for Latin America. Insper Instituto de Ensino e Pesquisa.
    41. Seifert, D., Seifert, R. W., Protopappa-Sieke, M. (2013). A Review of Trade Credit Literature: Opportunities for Research in Operations. European Journal of Operational Research, 231(2), 245-256, https://doi.org/10.1016/j.ejor.2013.03.016 Přejít k původnímu zdroji...
    42. Smith, J. K. (1987). Trade Credit and Informational Asymmetry. The Journal of Finance, 42(4), 863-872, https://doi.org/10.1111/j.1540-6261.1987.tb03916.x Přejít k původnímu zdroji...
    43. Sokolovska, O. (2017). Trade Credit Insurance: Theoretical Background and International Practices. Scientific Annals of Economics and Business, 64(1), 123-137, https://doi.org/10.1515/saeb-2017-0008 Přejít k původnímu zdroji...
    44. Tsung-Te, L., Jian-Hsin, C. (2015). Trade Credit and Bank Loan: Evidence from Chinese firms. International Review of Economics & Finance, 36, 17-29, https://doi.org/10.1016/j.iref.2014.11.004 Přejít k původnímu zdroji...
    45. Tsuruta, D. (2015). Bank Loan Availability and Trade Credit for Small Businesses During the Financial Crisis. The Quarterly Review of Economics and Finance, 55(C), 40-52, https://doi.org/10.1016/j.qref.2014.09.004 Přejít k původnímu zdroji...
    46. Wilner, B. (2000). The Exploitation of Relationships in Financial Distress: The Case of Trade Credit. The Journal of Finance, 55(1), 153-178, https://doi.org/10.1111/0022-1082.00203 Přejít k původnímu zdroji...
    47. Wilson, N., Summers, B. (2002). Trade Credit Terms Offered by Small Firms: Survey Evidence and Empirical Analysis. Journal of Business Finance & Accounting, 29(3-4), 317-351, https://doi.org/10.1111/1468-5957.00434 Přejít k původnímu zdroji...
    48. Wu, W., Ruai, O. M., Wu, C. (2012.). Trade Credit, Cash Holdings, and Financial Deepening: Evidence from a Transitional Economy. Journal of Banking and Finance, 36(11), 2868-2883, https://doi.org/10.1016/j.jbankfin.2011.04.009 Přejít k původnímu zdroji...
    49. Yang, X. (2011). Trade Credit versus Bank Credit: Evidence from Corporate Inventory Financing. The Quarterly Review of Economics and Finance, 51(4), 419-434, https://doi.org/10.1016/j.qref.2011.07.001 Přejít k původnímu zdroji...

    Tento článek je publikován v režimu tzv. otevřeného přístupu k vědeckým informacím (Open Access), který je distribuován pod licencí Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY NC ND 4.0), která umožňuje nekomerční distribuci, reprodukci a změny, pokud je původní dílo řádně ocitováno. Není povolena distribuce, reprodukce nebo změna, která není v souladu s podmínkami této licence.


    Zpět na obsah