Publication:
Trade Credit Contracts

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dc.contributor.authorLaeven, Luc
dc.contributor.authorKlapper, Leora
dc.contributor.authorRajan, Raghuram
dc.date.accessioned2012-03-19T18:03:22Z
dc.date.available2012-03-19T18:03:22Z
dc.date.issued2011-07-01
dc.description.abstractThe authors employ a novel dataset on almost 30,000 trade credit contracts to describe the broad characteristics of the parties that contract together; the key contractual terms, such as the discount for early payment; and the days by when payment is due. Whereas prior work has typically used information on only one side of the buyer-seller transaction, this paper utilizes information on both. The authors find that the largest and most creditworthy buyers receive contracts with the longest maturities from smaller suppliers, with the latter extending credit to the former perhaps as a way of certifying product quality. Discounts for early payment seem to be offered to riskier buyers to limit the potential nonpayment risk when credit is extended for non-financial reasons.en
dc.identifierhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110718142731
dc.identifier.doi10.1596/1813-9450-5726
dc.identifier.urihttps://hdl.handle.net/10986/3490
dc.languageEnglish
dc.relation.ispartofseriesPolicy Research working paper ; no. WPS 5726
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCESS TO CREDIT
dc.subjectACCESS TO FINANCE
dc.subjectACCESS TO FINANCING
dc.subjectACCOUNTS PAYABLE
dc.subjectACCOUNTS RECEIVABLE
dc.subjectACCOUNTS RECEIVABLES
dc.subjectADVERSE SELECTION
dc.subjectAFFILIATED ORGANIZATIONS
dc.subjectANALYSIS OF VARIANCE
dc.subjectASYMMETRIC INFORMATION
dc.subjectBALANCE SHEET
dc.subjectBANK CREDIT
dc.subjectBANKS
dc.subjectBARGAINING POWER
dc.subjectBILATERAL CONTRACT
dc.subjectBORROWING
dc.subjectBORROWING COSTS
dc.subjectCAPITAL STRUCTURE
dc.subjectCENTRAL BANK
dc.subjectCOLLATERAL
dc.subjectCOMPARATIVE ADVANTAGE
dc.subjectCOMPETITIVENESS
dc.subjectCONTRACTUAL TERMS
dc.subjectCREDIT CONSTRAINED FIRMS
dc.subjectCREDIT CONTRACT
dc.subjectCREDIT CONTRACTS
dc.subjectCREDIT DEFAULTS
dc.subjectCREDIT LOSSES
dc.subjectCREDIT MARKET
dc.subjectCREDIT PORTFOLIO
dc.subjectCREDIT PROVISION
dc.subjectCREDIT QUALITY
dc.subjectCREDIT RATING
dc.subjectCREDIT RATIONING
dc.subjectCREDIT RELATIONSHIPS
dc.subjectCREDIT RISK
dc.subjectCREDIT TERMS
dc.subjectCREDITS
dc.subjectCREDITWORTHINESS
dc.subjectCURRENCY
dc.subjectDEBT
dc.subjectDEBT COLLECTORS
dc.subjectDEBT MATURITY
dc.subjectDEFAULT RISK
dc.subjectDEPENDENT
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPMENT POLICY
dc.subjectDISCOUNT RATE
dc.subjectDISCRIMINATION
dc.subjectDUMMY VARIABLE
dc.subjectDURABLE
dc.subjectDURABLE GOODS
dc.subjectEXPLOITATION
dc.subjectEXPORTER
dc.subjectEXTERNAL FINANCING
dc.subjectFEDERAL RESERVE
dc.subjectFINANCES
dc.subjectFINANCIAL CRISES
dc.subjectFINANCIAL CRISIS
dc.subjectFINANCIAL DISTRESS
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFINANCIAL INTERMEDIARIES
dc.subjectFINANCIAL INTERMEDIARY
dc.subjectFINANCIAL MANAGEMENT
dc.subjectFINANCIAL MARKETS
dc.subjectFINANCIAL RISK
dc.subjectFINANCIAL RISKS
dc.subjectFINANCIAL SHOCKS
dc.subjectFINANCIAL STUDIES
dc.subjectFINANCIERS
dc.subjectFINANCING CONSTRAINTS
dc.subjectFINANCING COSTS
dc.subjectFOREIGN COURTS
dc.subjectGREATER ACCESS
dc.subjectGUARANTEE PRODUCT
dc.subjectGUARANTY
dc.subjectIMPORT DUTIES
dc.subjectINFORMAL CREDIT
dc.subjectINFORMATIONAL ASYMMETRY
dc.subjectINSURANCE
dc.subjectINTEREST RATE
dc.subjectINTEREST RATES
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL FIRMS
dc.subjectINTERNATIONAL TRADE
dc.subjectINTRINSIC VALUE
dc.subjectINVENTORY
dc.subjectINVENTORY MANAGEMENT
dc.subjectINVESTMENT RATING
dc.subjectJURISDICTIONS
dc.subjectLARGE FIRMS
dc.subjectLIQUIDATION
dc.subjectLIQUIDATION OF ASSETS
dc.subjectLIQUIDITY
dc.subjectMARKET COMPETITION
dc.subjectMATURITIES
dc.subjectMATURITY
dc.subjectMISREPORTING
dc.subjectMONETARY FUND
dc.subjectMULTINATIONAL
dc.subjectMULTINATIONAL FIRMS
dc.subjectNONPAYMENT
dc.subjectPAYMENT TERMS
dc.subjectPERFORMANCE BOND
dc.subjectPERISHABLE GOODS
dc.subjectPORTFOLIO
dc.subjectPRICE DISCRIMINATION
dc.subjectPROMPT PAYMENTS
dc.subjectPROPRIETARY INFORMATION
dc.subjectREGRESSION ANALYSIS
dc.subjectRISK MANAGEMENT
dc.subjectRISK OF DEFAULT
dc.subjectSMALL BUSINESS
dc.subjectSMALL BUSINESS FINANCE
dc.subjectSMALL BUSINESS FINANCES
dc.subjectSUPPLY CHAIN
dc.subjectSWAP
dc.subjectTERM CREDIT
dc.subjectTRADE CREDIT
dc.subjectTRADE FINANCE
dc.subjectTRANSACTION
dc.subjectTRANSACTIONS COSTS
dc.subjectTURNOVER
dc.subjectWORKING CAPITAL
dc.titleTrade Credit Contractsen
dspace.entity.typePublication
okr.crossref.titleTrade Credit Contracts
okr.date.disclosure2011-07-01
okr.date.doiregistration2025-04-10T11:21:49.753455Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110718142731
okr.guid986381468323059530
okr.identifier.doi10.1596/1813-9450-5726
okr.identifier.externaldocumentum000158349_20110718142731
okr.identifier.internaldocumentum14594558
okr.identifier.reportWPS5726
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2011/07/18/000158349_20110718142731/Rendered/PDF/WPS5726.pdfen
okr.region.administrativeThe World Region
okr.region.administrativeThe World Region
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isAuthorOfPublicatione0a9502f-8574-53b5-bf27-732f5a6026e2
relation.isAuthorOfPublication.latestForDiscoverye0a9502f-8574-53b5-bf27-732f5a6026e2
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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