Publication:
Trade Credit and Bank Credit : Evidence from Recent Financial Crises

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dc.contributor.authorLove, Inessa
dc.contributor.authorPreve, Lorenzo A.
dc.contributor.authorSarria-Allende, Virginia
dc.date.accessioned2012-06-18T15:56:21Z
dc.date.available2012-06-18T15:56:21Z
dc.date.issued2005-09
dc.description.abstractThe authors study the effect of financial crises on trade credit in a sample of 890 firms in six emerging economies. They find that although provision of trade credit increases right after the crisis, it consequently collapses in the following months and years. The authors observe that firms with weaker financial position (for example, high pre-crisis level of short-term debt and low cash stocks and cash flows) are more likely to reduce trade credit provided to their customers. This suggests that the decline in aggregate credit provision is driven by the reduction in the supply of trade credit, which follows the bank credit crunch. The results are consistent with the "redistribution view" of trade credit provision, in which bank credit is redistributed by way of trade credit by the firms with stronger financial position to the firms with weaker financial standen
dc.identifierhttp://documents.worldbank.org/curated/en/2005/09/6284707/trade-credit-bank-credit-evidence-recent-financial-crises
dc.identifier.doi10.1596/1813-9450-3716
dc.identifier.urihttps://hdl.handle.net/10986/8274
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper; No. 3716
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectASSETS
dc.subjectBALANCE SHEET
dc.subjectBALANCE SHEETS
dc.subjectBANK CREDIT
dc.subjectBANK LENDING
dc.subjectBORROWING
dc.subjectBUSINESS CYCLES
dc.subjectCORPORATE FINANCE
dc.subjectDEBT
dc.subjectDEVALUATION
dc.subjectECONOMIC ACTIVITY
dc.subjectEMERGING MARKETS
dc.subjectEQUILIBRIUM
dc.subjectEXCHANGE RATE
dc.subjectEXPLOITATION
dc.subjectFINANCIAL CRISES
dc.subjectFINANCIAL CRISIS
dc.subjectFINANCIAL INTERMEDIARIES
dc.subjectFINANCIAL INTERMEDIARY DEVELOPMENT
dc.subjectFINANCIAL MARKETS
dc.subjectFINANCIAL POLICIES
dc.subjectFINANCIAL STRENGTH
dc.subjectFUELS
dc.subjectFUTURE RESEARCH
dc.subjectGDP
dc.subjectGROWTH RATE
dc.subjectILLIQUIDITY
dc.subjectINSURANCE
dc.subjectINTEREST RATES
dc.subjectINTERNATIONAL FINANCE
dc.subjectINTERNATIONAL INVESTORS
dc.subjectLABOR COSTS
dc.subjectLIQUIDITY
dc.subjectMACROECONOMICS
dc.subjectMARKET VALUE
dc.subjectMONETARY POLICY
dc.subjectNET ASSETS
dc.subjectNET SALES
dc.subjectPROFITABILITY
dc.subjectPUBLIC POLICY
dc.subjectREGRESSION ANALYSIS
dc.subjectREORGANIZATION
dc.subjectTERMS OF TRADE
dc.subjectTRADE CREDIT
dc.subjectTRADE CREDITORS
dc.titleTrade Credit and Bank Credit : Evidence from Recent Financial Crisesen
dspace.entity.typePublication
okr.crosscuttingsolutionareaFragility, Conflict, and Violence
okr.crossref.titleTrade Credit And Bank Credit : Evidence From Recent Financial Crises
okr.date.doiregistration2025-04-10T09:14:45.295372Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2005/09/6284707/trade-credit-bank-credit-evidence-recent-financial-crises
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeEnvironment and Natural Resources
okr.globalpracticeFinance and Markets
okr.guid213551468280760840
okr.identifier.doi10.1596/1813-9450-3716
okr.identifier.externaldocumentum000016406_20050913105819
okr.identifier.internaldocumentum6284707
okr.identifier.reportWPS3716
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2005/09/13/000016406_20050913105819/Rendered/PDF/wps3716.pdfen
okr.region.administrativeLatin America & Caribbean
okr.region.administrativeEast Asia and Pacific
okr.region.countryKorea, Republic of
okr.region.countryIndonesia
okr.region.countryMexico
okr.region.countryThailand
okr.region.countryPhilippines
okr.region.countryMalaysia
okr.topicEconomic Theory and Research
okr.topicBanks and Banking Reform
okr.topicFinance and Financial Sector Development::Financial Intermediation
okr.topicInternational Terrorism and Counterterrorism
okr.topicEnvironmental Economics and Policies
okr.topicEnvironment
okr.topicMacroeconomics and Economic Growth
okr.topicConflict and Development
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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