Reverse trade credit or default risk? Explaining the use of prepayments by firms

Autor:	Simona Mateut
Rok vydání:	2014
Předmět:	Economics and Econometrics Strategy and Management media_common.quotation_subject Warranty Monetary economics Prepayment of loan Payment Trade credit Bargaining power Empirical research Production (economics) Business Business and International Management Database transaction Finance media_common
Zdroj:	Journal of Corporate Finance. 29:303-326
ISSN:	0929-1199
DOI:	10.1016/j.jcorpfin.2014.09.009
Popis:	This paper provides a detailed empirical study on the use of advance payments by firms. It establishes that some trade credit theories can also be applied to prepayment. The results, obtained from a large panel dataset, suggest that a series of factors affect prepayments. First, financially stronger customers finance the production of their financially weaker suppliers. Second, advance payments also occur as a response to transaction risk in both domestic and international transactions. Finally, besides financial and warranty reasons, the trading partners' relative bargaining power influences payment terms as well.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::818cefde29d66bc4990e9563f682f6d6 https://doi.org/10.1016/j.jcorpfin.2014.09.009 Zobrazit plný text záznamu Full Text from ScienceDirect