IMPACT OF FINANCIAL DISTRESS AND FINANCING CONSTRAINTS ON TRADE CREDIT

Gender, Investment Financing and Credit Constraints

This paper provides the first evidence on gender differences in investment financing, credit application and credit denial rates in Germany. The empirical analysis is carried out on a sample of firms drawn from the KfW Mittelstandspanel, a representative survey of German SMEs for the period from 2003 to 2009. Our results suggest that in female-owned firms the share of internal capital in invest...

Financial Development , Endogenous Dependence on External Financing , and Trade ∗

The influential papers on the effect of credit constraints on growth and international trade (Rajan and Zingales, 1998; Manova, 2013) tend to assume that asset tangibility and the share of external borrowing are exogenous industry characteristics, which are timeand country-invariant. In the finance literature, however, the share of external borrowing is viewed as endogenous and dependent on the...

Financial Development and Financing Constraints : International

Credit Policy in times of Financial Distress

This essay evaluates two central bank policy tools, capital requirements and lending of last resort, designed to avert financial panics in the context of endowment economies with complete markets and limited borrower commitment. Credit panics are self-fulfilling shocks to expected credit conditions which cause transitions from an optimal but fragile steady state to a suboptimal state with zero ...

Optimal Procurement Policy With Trade Credit Financing, Capacity Constraints and Stock-dependent Demand

 In this paper, optimum procurement policy is worked out when trade credit is offered to the retailer by the supplier and demand is stock-dependent. The own warehouse (OW) capacity is limited and excess inventory is stored in rented warehouse (RW). The rented warehouse has modern infra-structure facility. Hence, the unit holding cost in rented warehouse is assumed to be higher than that in the...