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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.
Call Number | Location | Available |
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The Journal of Finance | PSB lt.dasar - Pascasarjana | 1 |
Penerbit | ., |
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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 |