The Influence of the Enterprise’s Market Power on its Availability for Trade Credit and Bank Credit Financing - Based on the Empirical Test about the Listed Companies of Electrical Energy

2014 ◽  
Vol 687-691 ◽  
pp. 4794-4798
Author(s):  
Dan Wu ◽  
Yan Luo
Keyword(s):  
Market Power ◽  
Trade Credit ◽  
Empirical Test ◽  
Electrical Energy ◽  
Listed Companies ◽  
Bank Loans ◽  
Bank Credit ◽  
Linear Regression Models ◽  
Trade Credits ◽  
Credit Financing

The paper, sampling the data from A-shares listed companies of electrical energy during the period of 2009 to 2012, checks out the influence of the enterprise’s market power on its capacity for trade credit and bank credit financing. The paper tries to find out the internal relationship among them by building linear regression models of the explained variable, Credit, the explaining variable, MP, and the control variables, SIZE, EBIT, LIQ, CFO, SBA and SBA*MP. In the study, we find that the target customers of trade credits and bank loans are almost enterprises with a high market power.

scholarly journals Corporate Environmental Performance and Bank Credit Financing

2021 ◽  
Vol 292 ◽  
pp. 03003
Author(s):  
Zhijian Liang ◽  
Xueying Wang
Keyword(s):  
Environmental Performance ◽  
Listed Companies ◽  
Bank Credit ◽  
Corporate Environmental Performance ◽  
Corporate Credit ◽  
Credit Financing ◽  
The Impact

Taking listed companies in heavy polluting industries in China from 2012 to 2018 as research samples, this paper examines the impact of corporate environmental performance on credit financing capacity. The results show that good environmental performance contributes to the improvement of corporate credit financing capacity, which is embodied in more new loans, lower loan rates, longer loan maturities, and less possibility of mortgage guarantee requirements.

scholarly journals Financing Strategy and Carbon Emission Abatement in a Supply Chain considering Retailers’ Competition

2021 ◽  
Vol 2021 ◽  
pp. 1-19
Author(s):  
Man Yu ◽  
Tuo Li ◽  
Zhanwen Shi
Keyword(s):  
Supply Chain ◽  
Interest Rate ◽  
Carbon Emission ◽  
Trade Credit ◽  
Bank Credit ◽  
Emission Abatement ◽  
Dual Channel ◽  
Financing Channels ◽  
Credit Financing ◽  
Financing Strategy

This paper investigates the issues of financing channels (bank credit financing, trade credit financing, and dual-channel financing) and carbon emission abatement in a supply chain consisting of one capital-constrained manufacturer and two capital-constrained retailers. Compared with bank credit, we find that every member can make more profit under trade credit when only one financing channel is available. When both bank credit and trade credit are available, the retailers’ financing strategy highly depends on the interest rates charged by the creditors. In addition, we also examine the impact of financing channels on emission abatement. It shows that the manufacturer reduces more carbon emissions under trade credit. Interestingly, the emission abatement has nothing to do with trade credit interest rate when retailers only adopt trade credit, whereas it is closely related to trade credit interest rate under dual-channel financing.

scholarly journals Joint financing and ordering decisions in a capital-constrained supply chain with risk preference

2020 ◽  
Author(s):  
Zhiyuan Zhen ◽  
Jing Ru Wang
Keyword(s):  
Supply Chain ◽  
Trade Credit ◽  
Stackelberg Game ◽  
Wholesale Price ◽  
Risk Preference ◽  
Bank Credit ◽  
Risk Averse ◽  
Initial Capital ◽  
Preference Behavior ◽  
Credit Financing

We consider a two-echelon supply chain consisting of one dominant supplier and one capital-constrained retailer. The retailer needs to solve the shortage of working capital either from a bank or from its core supplier, which offers trade credit when it is also beneficial to itself. We assume the retailer is risk-averse behavior and the supplier has different risk preference behaviors that jointly model risk-averse, risk-neutral, and risk-taking. With a wholesale price contract, we incorporate each member’s risk preference behavior into its objective function. Then we derive the optimal decisions in a Stackelberg game under bank credit financing and trade credit financing, respectively. We find that there exists a supplier’s risk preference threshold that distinguishes financing scheme. When the supplier is a relatively higher risk preference, trade credit financing makes both the retailer and the supplier better off and is a unique financing equilibrium. Otherwise, the members prefer bank credit financing . Besides, the supplier with relatively higher risk preference behavior prefers the retailer with a low initial capital as a partner; the supplier with relatively lower risk preference behavior prefers the retailer with a higher initial capital level. The above theoretical results are verified by numerical analysis.

scholarly journals THE SUBSTITUTION FINANCING EFFECT OF SUPPLIERS’ TRADE CREDIT ON CUSTOMERS’ TRADE CREDIT IN CHINA

2021 ◽  
Vol 22 (6) ◽  
pp. 1456-1475
Author(s):  
Chun Guo ◽  
Wunhong Su ◽  
Xiaobao Song
Keyword(s):  
Capital Market ◽  
Trade Credit ◽  
Bank Credit ◽  
Financing Constraints ◽  
Market Liberalization ◽  
Listed Firms ◽  
Trade Credits ◽  
Capital Market Liberalization ◽  
The Capital Market

This study investigates the substitution financing effect of suppliers’ trade credit on customers’ trade-credit using Chinese listed firms from 2009 to 2018. Results verify the substitution financing effect of suppliers’ trade credit on customers’ trade credit, indicating that firms with higher suppliers’ trade credit have lower customers’ trade credit. Moreover, suppliers’ trade-credit substitutes customers’ trade credit by alleviating financing constraints. Customer concentration weakens the substitution financing relation. Finally, the substitution financing effect of customers’ trade credit on bank credit is more pronounced than that of suppliers’ trade credit. As exogenous policy shock, the capital market liberalization has no significant impact on the substitution financing relation between heterogeneous trade credits. This study reveals that trade credit is heterogeneous rather than homogeneous. The substitution financing effect also exists in trade credit inside, which expands the existing literature’s understanding of trade credit and the substitution financing theory’s connotation.

scholarly journals As A Supply Chain Financing Source, Trade Credit and Bank Credit Relationship during Financial Crises from Clustering Point of View

2016 ◽  
Vol 9 (4) ◽  
pp. 45 ◽  
Author(s):  
Cuneyt Sevim ◽  
Aykut Ekiyor ◽  
Ali Tosyali
Keyword(s):  
Supply Chain ◽  
Financial Crisis ◽  
World Bank ◽  
Clustering Analysis ◽  
Trade Credit ◽  
Feature Selection Method ◽  
Point Of View ◽  
Bank Credit ◽  
Supply Chain Financing ◽  
Trade Credits

<p>This paper examines trade credit and bank credit behavior of firms during financial crisis using World Bank Survey dataset that contains detailed data on trade credit utilization of firms. Unlike literature, cluster analysis is used in order to investigate credit behavior of firms during financial crisis. For better clustering results, feature selection method is used to select variables thought to be important on model. When examined the trade and bank credit behavior of clusters that have been formed by using these variables with clustering analysis, it has been found that impact of the crisis on firms in the supply chain is important. It is found that due to demand fall for goods generated by crisis, firms are motivated to give trade credits to their customers in order not to lose them. However, firms need financial support either from the previous link in the supply chain through trade credit or from the financial institutions through bank credit.</p>

Trade credit, SMEs and short-run survivorship: what we know and what we would like to know

2018 ◽  
Vol 10 (4) ◽  
pp. 346-362 ◽  
Author(s):  
Belinda Laura Del Gaudio ◽  
Claudio Porzio ◽  
Vincenzo Verdoliva
Keyword(s):  
Trade Credit ◽  
Time Span ◽  
Bank Credit ◽  
Alternative Form ◽  
Substitution Effects ◽  
Content Type ◽  
Firm Financing ◽  
Short Run ◽  
Credit Financing ◽  
The Cost

Purpose The purpose of this paper is to draw the state of the art on the trade credit, one of the most alternative form of firm financing, especially for small- and medium-sized enterprises (SMEs). Design/methodology/approach The present study first reviews the theoretical papers focusing on the raison d’être of trade credit financing. Then the study identifies the empirical research studies in SMEs’ context and summarizes them on the basis of the following drivers: the country and the period analysed, the methodology used, the main findings and the presence of a shock in time span. Findings Findings reveal a discrepancy of results, especially in testing Meltzer’s hypothesis of substitution effects among trade and bank credit. The heterogeneity of results should be driven by lending infrastructure of the country analysed and the presence or not of a shock in time span considered. Financial constraints can reconcile the discrepancy of results. Then, most of the studies analysed are based on the assumption that trade credit is more expensive than bank credit. Originality/value This paper provides valuable conclusion on past and present studies on trade credit. First is providing a rule of the thumb in the reading of empirical evidences. Also researchers and academicians should deal with consideration regarding the cost of trade credit that still appears as a black box. This is an important issue in corporate finance, as it influences the financial decision of firms and it will be useful for conducting a deeper comparison on the alternative cost of firm financing.

scholarly journals Corporate governance and credit financing in a developing economy

2017 ◽  
Vol 14 (4) ◽  
pp. 341-349
Author(s):  
Shame Mugova ◽  
Paul R. Sachs
Keyword(s):  
Corporate Governance ◽  
Emerging Markets ◽  
Trade Credit ◽  
Stock Exchange ◽  
Financial Sector ◽  
Bank Loans ◽  
Financial Sector Development ◽  
Governance Practices ◽  
Capital Financing ◽  
Credit Financing

Emerging markets have common weaknesses in their financial market development. Financial development is one institutional force that shapes financing and governance of firms in emerging markets. Debt and equity are alternative governance instruments. Trade credit is part of debt and therefore should be treated as such in corporate governance. We used a fixed effect regression of financial sector development and trade credit of firms listed on the Johannesburg Stock Exchange to ascertain the relationship of financial sector development and trade credit. We also analyzed the Socially Responsible Index (SRI) which measures corporate governance. We find that good corporate governance practices do not result in substituting of trade credit, despite its high implicit costs, with bank loans for working capital financing.

Analysis on the Small and Medium-Sized Enterprise Financing Bank Loans Availability

2014 ◽  
Vol 687-691 ◽  
pp. 4799-4802 ◽  
Author(s):  
Lei Xia
Keyword(s):  
Empirical Research ◽  
Significant Influence ◽  
Credit Rating ◽  
Bank Loans ◽  
Bank Loan ◽  
Bank Credit ◽  
Financing Channel ◽  
Indirect Financing ◽  
Credit Financing

Indirect financing is bank credit financing, this is the main source of funds of our country small and medium-sized enterprise.Fang Gang believes that the current urgent need to develop non state owned bank is an effective way to solve the financing of small and medium-sized enterprises.In a variety of exogenous financing channel of small and medium-sized enterprises, bank loan is one of the most important financing channel.This paper do empirical research about financing bank loans availability of small and medium-sized enterprise for to our country. The results show that, in general, enterprises in the credit rating, longer enterprise age, status of the enterprise market, enterprise's profit ability and provide collateral ability, enterprise is the enterprise and enterprise in the economy is more developed areas and other factors, has significant influence on enterprise ability to get loan.

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