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Buyers and suppliers have diverging interests about trade-credit maturities: buyers desire long payment periods as a source of cheap funding, while suppliers prefer swift payments to avoid locking up scarce liquidity in idle assets. A fast-growing financial product innovation - supply-chain...
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Despite the fact that economic interconnections among firms are very common, there is little research that examines the equilibrium outcome of such interconnections in credit markets. We examine how supply chain interconnections among borrowers within a lender’s loan portfolio affect...
Persistent link: https://www.econbiz.de/10014349113
Extending the existing redistribution theory to Chinese manufacturing firms, we find that the provision of trade credit through investing in accounts receivable is significantly correlated with the amount of funds raised through providers' equity finance, suggesting that firms not only...
Persistent link: https://www.econbiz.de/10012964225
liabilities. However, its effects on SME performance and risk have been insufficiently studied. The competitiveness of SMEs … indicate that an SME’s SCF adoption positively impacts its performance but negatively impacts its risk. To further explore … exploring the multiple facets of SCF adoption and highlighting the moderating role of buyer-supplier relationship in SCF and SME …
Persistent link: https://www.econbiz.de/10014359254
This study investigates the role pre-existing personal connections play in a crucial element of the supply chain – supplier selection. We find that the likelihood that a potential supplier (hereafter, a vendor) is selected to be an actual supplier (hereafter, supplier) increases when personal...
Persistent link: https://www.econbiz.de/10012853971
Using comprehensive bank-loan contract information, we show that the power of a firm relative to its suppliers eases its terms of bank financing, specifically through lower loan prices and less restrictive non-price contract terms. Our results are robust to controlling for product-market...
Persistent link: https://www.econbiz.de/10012856850
Aim: Research on supply chain disruptions is most commonly conducted on the inter-organizational level of analysis. Although personal relationships in business-to-business relationships are generally considered important, the role of personal relationships during supply chain disruptions has...
Persistent link: https://www.econbiz.de/10015323440
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Trade credit extended to suppliers in the video game industry does not serve as a commitment device for large customers in determining which vendors to make relationship-specific investments in. Suppliers of video games are better off investing in relationships with trade creditors than seeking...
Persistent link: https://www.econbiz.de/10011991280