External finance and trade credit extension in China: does political affiliation make a difference?

Autor:	Alessandra Guariglia, Simona Mateut
Rok vydání:	2013
Předmět:	Finance 050208 finance business.industry 05 social sciences Economics Econometrics and Finance (miscellaneous) Credit reference Politics Trade credit Extension (metaphysics) Credit history 0502 economics and business Economics 050207 economics China business
Zdroj:	The European Journal of Finance. 22:319-344
ISSN:	1466-4364 1351-847X
DOI:	10.1080/1351847x.2012.762030
Popis:	Using a dataset of 65,706 Chinese firms over the period 2000–2007, we show that politically affiliated firms benefit from easier access to short-term external finance and extend more trade credit than their non-affiliated counterparts. Furthermore, we observe that the sensitivity of trade credit extension to short-term liabilities, which is largest for private firms producing differentiated goods, decreases with the degree of political affiliation. This suggests that gaining political affiliation contributes not only to alleviating individual firms’ financing constraints, but also to reducing the overall level of constraints in the economy through the additional trade credit being made available.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::f601128930b4b91af92009dc162105d6 https://doi.org/10.1080/1351847x.2012.762030 Zobrazit plný text záznamu