Dual class firms and trade credit

Autor: Nilesh B. Sah, Deepak G. More
Rok vydání: 2022
Předmět:
Zdroj: Finance Research Letters. 46:102303
ISSN: 1544-6123
DOI: 10.1016/j.frl.2021.102303
Popis: Firms with dual class structure can suffer from poor corporate governance and may utilize strategies that can help them avert monitoring by outsiders. We find that dual class firms use less trade credit as compared to non-dual class firms. We believe that this behavior is motivated by their antipathy towards supplier oversight. Our results are especially relevant for non-manufacturing and high bargaining power dual class firms. We extend the literature by shedding light on trade credit policies of dual class firms and by presenting an additional metric to assess operational transparency and monitoring preferences of dual class firms.
Databáze: OpenAIRE
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