The use of trade credit as a short-term financing is increasing in the last years; large firms use more days to pay small firms than they need, which causes financial fatal consequences to suppliers. These financial problems are not new, but with the credit crunch they are coming up because the massive use of the trade credit impacts negatively on suppliers whose insolvency and bankruptcy risks...

The use of trade credit as a short-term financing is increasing in the last years; large firms use more days to pay small firms than they need, which causes financial fatal consequences to suppliers. These financial problems are not new, but with the credit crunch they are coming up because the massive use of the trade credit impacts negatively on suppliers whose insolvency and bankruptcy risks...

We investigate how the retailer adjusts optimal ordering policy in the presence of cap-and-trade system and trade credit, and the corresponding changes of the retailer’s total costs and carbon footprint. Trade credit is one of the most used short-term financing tools. Our study shows that carbon emissions trading will shorten the ordering cycle for products that emit more carbon dioxide during ...

We examine shareholder wealth implications of supplying financing to customers. Robust results suggest that excess returns and changes in trade receivables are directly and significantly related. Further evidence indicates the value of receivables is higher for suppliers with stronger motives relating to operating and contracting costs. The results also suggest a discounted value of receivables...

Márcia Lima Bandeira E-mail address: [email protected] Escola de Administração de Empresas de São Paulo/Fundação Getulio Vargas São Paulo, SP, Brazil. ABSTRACT While trade credit may be used as a substitute for bank loans, we find empirical evidence that listed firms do use bank debt and trade credit as two complementary sources of financing in line with recent theoretical papers (e.g...

a r t i c l e i n f o Keywords: Supplier–retailer inventory system Trade credit Defective items Variable production This paper investigates an integrated inventory model with variable production rate and price-sensitive demand rate under two-level trade credit. The model considers two-level trade credit policy in which the retailer receives a full trade credit from its supplier, and offers part...

This study investigates the substitution financing effect of suppliers’ trade credit on customers’ trade-credit using Chinese listed firms from 2009 to 2018. Results verify credit, indicating that with higher have lower credit. Moreover, substitutes by alleviating constraints. Customer concentration weakens relation. Finally, bank is more pronounced than As exogenous policy shock, capital marke...

Trade credit is an increasingly important payment behavior in real business transactions. To reduce nonpayment risks, a supplier/retailer frequently offers partial trade credit to its credit risk downstream member who must pay a portion of the purchase amount at the time of placing an order and then receives a permissible delay on the rest of the outstanding amount. This paper develops an EPQ m...