Bank debt and trade credit for SMEs in Europe: firm-, industry-, and country-level determinants

Andrieu, Guillaume; Staglianò, Raffaele; Zwan, Peter van der

doi:10.1007/s11187-017-9926-y

Cited by 98 publications

(87 citation statements)

References 56 publications

(86 reference statements)

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“…The empirical research, carried out on SMEs worldwide, studies the linear relationship between trade credit and age, and is of a mixed nature, even when the same period or geographical area are analyzed (Table 1). First, a negative relation is shown in the United Kingdom [43,50], Finland [51], Spain and Portugal [16,26], Japan [44], Italy [15], and in emerging countries [52]; second, a positive linear relation is observed in studies carried out on the US [49], Japan [53], and the European Union [12]; and third, no relationship is observed in Sweden [14] and in the European Union [13]. − Portugal, Spain Canto-Cuevas et al, 2016 [16] − Spain Yazdanfar and Öhman, 2017 [14] Not significant Sweden Andrieu et al, 2018 [13] Not significant European Union…”

Section: The Relationship Between Life Cycle and Trade Creditmentioning

confidence: 99%

“…In manufacturing companies, the purchases from suppliers represent a major percentage of firm costs [25,26,56], and the suppliers consider the value of the inputs delivered as strong collateral [57,58]. Therefore, manufacturing companies obtain trade credit more easily than others [13,22], and trade credit represents a relevant role as a financial resource of these firms [18,55].…”

Section: Research Hypothesesmentioning

confidence: 99%

“…From among this evidence, that which was carried out on European SMEs draws particular interest because studies that analyze similar areas have shown divergent results. While Casey and O'Toole [12] observe a positive effect of age on trade credit, Andrieu et al [13] and Yazdanfar and Öhman [14] show no significant effect of age, and Deloof and La Rocca [15] and Canto-Cuevas et al [16], among others, find a negative effect of age. Secondly, there is a non-linear approach, in which the empirical evidence strives to examine whether the relationship between trade credit and age is non-linear.…”

Section: Introductionmentioning

confidence: 97%

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Trade Credit as a Sustainable Resource during an SME’s Life Cycle

2019

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Inadequate access to finance for small and medium-sized enterprises (SMEs) can present a major impediment to SMEs’ contribution towards driving sustainable economic growth. The aim of this article is to investigate the role of life cycle on SME financing decisions while focusing on trade credit. To this end, we study whether trade credit and its firm-factor determinants differ depending on the stage of life cycle of the SMEs. For the empirical analysis, a sample is employed of manufacturing SMEs operating in 12 European Union countries over the period 2008–2014 and a panel data model with fixed effects is applied. We find that the business life cycle influences trade credit and that this influence is stronger in young firms, although this relation is non-linear across the firms’ life cycle. We further show that the impact of firm-factor determinants on trade credit differs across the business life cycle in terms of magnitude levels. Our results demonstrate that the business life cycle matters when analysing trade credit, and it should therefore be considered when managers and policymakers strive to solve the financial problems of an SME and to consequently incorporate the SME into the sustainable economy.

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Section: The Relationship Between Life Cycle and Trade Creditmentioning

confidence: 99%

Section: Research Hypothesesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 97%

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Trade Credit as a Sustainable Resource during an SME’s Life Cycle

2019

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“…The finance-oriented studies investigate different mechanisms of supply chain financing services, such as trade credit, reverse factoring, and also discuss how supply contracts vary with these different mechanisms [69,70]. A series of comparative analyses were conducted by a group of researchers, including Chen [71] and Andrieu et al [72]. Fabbri and Klapper [73] investigated the impact of supplier's bargaining power on SCF solution using a firm-level database of Chinese firms.…”

Section: Supply Chain Finance and Sustainabilitymentioning

confidence: 99%

Alleviating Financing Constraints of SMEs through Supply Chain

Yang

Chen

et al. 2019

Sustainability

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Small and medium-sized enterprises play a crucial role in sustaining economic development in both developed economies and developing economies, however, many of them suffer from chronic and structural difficulties in accessing external financing. In this paper, we develop a theoretical framework to illustrate how information structures work in the strategic interactions between banks and firms in a supply chain, and why the transaction information in a supply chain may serve to reduce information asymmetry and improve SMEs’ access to external financing. We find that under incomplete information, the transactions between SMEs and suppliers can serve as signals for banks, which may help banks access the private information of SMEs, thus reducing information asymmetry between them. To maximize profit, banks should dynamically adjust both their interest rate policies and risk management strategies when providing financing services to SMEs, according to the structure of the financial market. The improvement of the external financial environment for SMEs may benefit the entire supply chain, thus facilitating its sustainable development and the growth of SMEs. Our framework sheds light on how SMEs in a supply chain may enhance their survivability and facilitate their development through appropriate strategies to improve business performances and manage credit risks.

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“…A principal vantagem do relacionamento bancário diz respeito à redução da assimetria de informação, atenuando assim as dificuldades de se conceder capital para empresas menos transparentes, que não possuem demonstrações financeiras auditadas, que possuem um histórico de crédito restrito e que demonstram incapacidade de oferecer garantias (Andrieu, Staglianò & Zwan, 2017;Duqi et al, 2018).…”

Section: Hipóteses Da Pesquisaunclassified

Efeito das fontes de financiamento sobre a sensibilidade do investimento ao fluxo de caixa: evidências para o Brasil

Eça¹

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Agradeço primeiramente a Deus por ter me conduzido carinhosamente até aqui. Agradeço aos meus pais, que tanto se esforçaram para que eu tivesse uma boa educação. Estendo os agradecimentos ao meu irmão por todo apoio e torcida. Agradeço à minha esposa, Marina, que, apesar dos meus momentos de ausência, nunca deixou de me apoiar incondicionalmente. Agradeço ao meu orientador, Prof. Dr. Maurício Ribeiro do Valle. Foi uma honra ter recebido suas orientações ao longo deste tempo. Obrigado pela paciência que teve comigo e pela seriedade com que conduziu todo trabalho. Agradeço a todos os amigos que estiveram comigo nessa jornada na pósgraduação, em especial Vanessa, Lucas, Beatriz, Gislaine, Lucelma, Yuri, Matheus, Marlos e Fernando. Agradeço também aos amigos Tatiane Franzotti, William Suzuki e Wilson Tarantin pelas importantes contribuições e sugestões. Agradeço a todos os professores da FEA-RP, em especial ao Prof. Dr. Fabiano Guasti Lima. Agradeço à FIPECAFI, em especial ao Prof. Dr. Ariovaldo dos Santos, Eliene Silva e ao Nivaldo Gomes por gentilmente terem contribuído para a construção da minha base de dados. Agradeço ao Prof. Dr. Marcelo Botelho, à Profª. Dra. Tatiana Albanez e ao Prof. Dr. Andrei pelas enriquecedoras contribuições na banca de qualificação. Agradeço à Coordenação de Aperfeiçoamento de Pessoal de Nível Superior-CAPES. O presente trabalho foi realizado com apoio da Coordenação de Aperfeiçoamento de Pessoal de Nível Superior-Brasil (CAPES)-Código de Financiamento 001. Por fim, agradeço a todos que, de maneira direta ou indireta, contribuíram para realização deste estudo. RESUMO Eça, J. P. A. (2019). Efeito das fontes de financiamento sobre a sensibilidade do investimento ao fluxo de caixa: evidências para o Brasil.

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Bank debt and trade credit for SMEs in Europe: firm-, industry-, and country-level determinants

Cited by 98 publications

References 56 publications

Trade Credit as a Sustainable Resource during an SME’s Life Cycle

Trade Credit as a Sustainable Resource during an SME’s Life Cycle

Alleviating Financing Constraints of SMEs through Supply Chain

Efeito das fontes de financiamento sobre a sensibilidade do investimento ao fluxo de caixa: evidências para o Brasil

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