Does trade credit play a signalling role? Some evidence from SMEs microdata

Agostino, Mariarosaria; Trivieri, Francesco

doi:10.1007/s11187-013-9478-8

Cited by 67 publications

(46 citation statements)

References 94 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…However, contrary to our approach, they only consider the current usage of trade credit and not the application outcome. Agostino and Trivieri (2014) show that banks in Italy take trade credit information into account when they make lending decisions, also suggesting a complementary rather than a substitutive mechanism between the two sources of finance. In particular, they show that the positive effect of trade credit financing on obtaining bank financing is all the more important, as the relationships with banks are younger.…”

Section: Trade Credit Versus Bank Financingmentioning

confidence: 91%

See 1 more Smart Citation

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

2017

View full text Add to dashboard Cite

Section: Trade Credit Versus Bank Financingmentioning

confidence: 91%

“…Second, we focus on whether bank financing and trade credit should be considered Bcomplements^or Bsubstitutes^ (Giannetti et al 2011;Agostino and Trivieri 2014). SMEs are inclined to use multiple sources of finance (Moritz et al 2016).…”

Section: Introductionmentioning

confidence: 99%

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

2017

View full text Add to dashboard Cite

“…In fact Agostino and Trivieri (2014) in a study for SME also found that banks seem to consider suppliers a reliable source of information on firms' financial conditions even after several years of lending relationships with such clients. In this context, the following hypothesis has been formulated to be tested.…”

Section: Trade Credit and Information Asymmetrymentioning

confidence: 99%

The Determinants of Trade Credit: A Study of Portuguese Industrial Companies

Santos¹,

Silva²

2014

International Journal of Financial Research

View full text Add to dashboard Cite

Despite the relevance of trade credit as a source of business financing, the topic is far from being considered exhausted, especially because there is no general and integrated theory explaining the causes and consequences of trade credit.Our research aims to contribute towards the literature that studies the determinants for granting and receiving trade credit. In this sequence, the present study seeks to empirically test some theories about the reasons why companies grant and receive commercial credit. For this purpose we apply a fixed effect model to a panel of 11 040 Portuguese industrial companies, of which 360 are large companies and the majority 10 680 are Small and Medium Enterprises (SME) for the period between 2003 and 2009.We conclude that large companies (with greater access to credit market) serve as financial intermediaries to their clients with less access to finance. In addition, it was observed that the supplier companies use trade credit as a legal means of price discrimination. Finally, financially constrained enterprises, especially in times of financial crisis, use commercial credit as an alternative source of funding, endorsing the hypothesis of substitution between trade credit and bank credit.

show abstract

“…In Italy, the weight of trade credit has been traditionally important (De Blasio, 2005;Marotta, 2005;De Socio, 2010;Agostino & Trivieri, 2013). Data used in this paper and described afterwards, indicate that trade credit accounts on average for 24.9% of firms' total liabilities.…”

Section: Introductionmentioning

confidence: 86%

Finance and R&D Investment: A Panel Study of Italian Manufacturing Firms

Succurro

Costanzo

2016

IJEF

View full text Add to dashboard Cite

The purpose of this study is to examine the role of different sources of finance on R&D investment decisions in Italian manufacturing firms. Accounting data, taken from the Aida database, are collected over the [2006][2007][2008][2009][2010][2011][2012][2013] years. The empirical evidence shows that the availability of external financing primarily affects the decision to engage in R&D activity rather than R&D intensity. Internal cash flow, on the contrary, does affect both the likelihood of whether firms will undertake any R&D and the size of R&D spending. This impact is strongly significant for financially weaker firms, SMEs and high-tech firms. Due to greater asymmetric information problems, small innovative firms mainly rely on cash-flow to finance innovative projects. Since bank loans and other forms of debt are not well suited for R&D-intensive activities, our study would contribute to the debate whether it might be socially desirable to incentivize alternative small business financing options, still limited in Italy.

show abstract

Does trade credit play a signalling role? Some evidence from SMEs microdata

Cited by 67 publications

References 94 publications

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

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

The Determinants of Trade Credit: A Study of Portuguese Industrial Companies

Finance and R&D Investment: A Panel Study of Italian Manufacturing Firms

Contact Info

Product

Resources

About