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Trade Credit and Industry Dynamics: Evidence from Trucking Firms

Long payment terms are a strong impediment to the entry and survival of liquidity-constrained firms. To test this idea and its implications, I consider the effect of a reform restricting the trade credit supply of French trucking firms. In a difference-in-differences setting, I find that trucking firms' corporate default probability decreases by 25% following the restriction. The effect is persistent, concentrated among liquidity-constrained firms, and not offset by a decrease in profits. The restriction also triggers an increase in the entry of small trucking firms.

Ketersediaan

Call NumberLocationAvailable
The Journal of FinancePSB lt.dasar - Pascasarjana1
Penerbit .,
Edisi Vol. 71, Number 5, Oct. 2016
Subjek -
ISBN/ISSN 00221082
Klasifikasi NONE
Deskripsi Fisik -
Info Detail Spesifik The Journal of Finance
Other Version/Related Tidak tersedia versi lain
Lampiran Berkas Tidak Ada Data