The Impact of Macroeconomic Uncertainty on Trade Credit for Non–Financial Firms
نویسندگان
چکیده
In this paper we hypothesize that greater macroeconomic uncertainty would cause firms to increasingly turn to their suppliers as a source of finance, making greater use of trade credit. We test this hypothesis using a panel of non–financial firms drawn from the annual COMPUSTAT database and show that an increase in macroeconomic uncertainty leads to a narrowing of the cross–sectional distribution of firms’ trade credit–to–sales ratios.
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