Corporate growth – Trade credit relationship: Evidence from a panel of countries

KARAKOÇ B.

Borsa Istanbul Review, cilt.22, sa.1, ss.156-168, 2022 (SSCI, Scopus) identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 22 Sayı: 1
  • Basım Tarihi: 2022
  • Doi Numarası: 10.1016/j.bir.2021.03.004
  • Dergi Adı: Borsa Istanbul Review
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus, EconLit, Directory of Open Access Journals
  • Sayfa Sayıları: ss.156-168
  • Anahtar Kelimeler: Alternative financing, Corporate growth, Signaling, Trade credit, Working capital management
  • Samsun Üniversitesi Adresli: Hayır

Özet

This paper examines how a borrower's growth affects trade credit decisions. An analysis of publicly traded firm data from nine developed economies indicates that trade credit increases with growth. In some cases, this increase is driven by conditions related to liquidity. Exploring the relationship under macroeconomic conditions reveals evidence of an increase in trade credit financing in slow-moving economies and in times of adverse borrowing conditions. The findings indicate strong support from suppliers under circumstances that can be explained by informational symmetry and the increasing market power of growing firms.