Creditor rights, monetary policy, financial crisis, and trade credit

Cantero-Saiz, María; Torre-Olmo, Begoña; Azofra, Sergio Sanfilippo

doi:10.1177/2340944420988294

Cited by 2 publications

(3 citation statements)

References 79 publications

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“…It implies that trade credit supply was affected during the crisis. This finding supports the results by McGuinness and Hogan (2014) and Cantero-Saiz et al (2021). Average payment period is not much different in crisis and pre-crisis periods, but higher in post-crisis period.…”

Section: Empirical Analysis and Results Discussionsupporting

confidence: 91%

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Determinants of Trade Credit Supply among Developing Countries during the Financial Crisis of 2008

Bashir

Regupathi

2022

BER

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The purpose of this study is to identify the firm-specific and country-specific determinants of trade credit supply during the financial crisis of 2008 and compare among upper-middle income and lower-middle income countries. Trade credit supply is measured as average collection period. For panel data analysis, this study uses the Prais - Winsten Panel Corrected Standard Errors (PCSE) method. PCSE removes the of cross-sectional dependence issue in the panel dataset. Findings indicate that firms had to pay their suppliers earlier during the financial crisis 2008 than pre-crisis. Financial crisis significantly influenced the relationship between determinants and trade credit supply but to different levels in different income groups. Average payment periods and private credit to GDP significantly and positively increased the average collection period more in lower-middle income developing countries and less in upper-middle developing income countries. Cash flow volatility and leverage influenced the average collection period significantly and negatively during the crisis. This influence was stronger than pre-crisis and post-crisis periods, and more significant in lower-middle income countries and less in upper-middle income countries. The negative relationship between inflation and trade credit supply is strongly negative in lower-middle income countries. Overall, the results suggest that financial crisis changed the relationship between determinants and trade credit supply and the extant of this change was different in different income group countries.

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Section: Empirical Analysis and Results Discussionsupporting

confidence: 91%

“…Previous studies also considered period 2008-2009 to control for the global financial crisis years(Cantero-Saiz et al, 2021;Ibrahim & Rizvi, 2018).…”

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confidence: 99%

Determinants of Trade Credit Supply among Developing Countries during the Financial Crisis of 2008

Bashir

Regupathi

2022

BER

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“…44 Unsecured creditors, such as suppliers who offer trade payables, provide unsecured debt. 46 Rent, employee salaries, and tax liabilities are additional unsecured creditors. Unsecured debt is short-term in nature and is primarily determined by accounting records.…”

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confidence: 99%

Rethinking Indebtedness according to the Principles of Justice and Equality

Johan

Sudiro

Gunadi

et al. 2022

LeSRev

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The law's objective is to uphold the principle of justice. Contractual debts, interest-bearing debts, unsecured debts, and debts with payment terms are all included in restructuring plans. All debts must be accompanied by a contract. If the business defaults, the contract serves as proof of debt. This research focuses on Indonesia's bankruptcy law. This study employs an empirical qualitative legal method. The study recommends categorizing debt according to its source, duration, function, and collateral. Debts classified as restructuring must waive their collateral rights. This debt grouping is consistent with finance's capital structure theory. This research will revolutionize the current concept of debt restructuring. The study will serve as a resource for all business actors who have documented debt. Debt is uncommon in developing countries such as Indonesia. Entrepreneurs in developing countries have established business relationships based on mutual trust. The study's limitation is that it does not take industry type into account. Additionally, this research has implications for a firm's total cost of capital as a result of changes in the risk model and creditor roles, particularly in developing countries. This study proposes a system of debt classification based on principles of justice and equity. This classification is made not only on the basis of the guarantee's type, but also on the basis of the agreement's duration and financial principles. The purpose of this study is to examine bankruptcy law in developing countries. Knowledge of bankruptcy law will add value to investors and banks on a global scale.

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Creditor rights, monetary policy, financial crisis, and trade credit

Cited by 2 publications

References 79 publications

Determinants of Trade Credit Supply among Developing Countries during the Financial Crisis of 2008

Determinants of Trade Credit Supply among Developing Countries during the Financial Crisis of 2008

Rethinking Indebtedness according to the Principles of Justice and Equality

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