Trade Credit and the Effect of Macro-Financial Shocks: Evidence From U.S. Panel Data
IMF Working Papers, June 1, 2003
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- Trade Credit and the Effect of Macro-Financial Shocks: Evidence From U.S. Panel Data
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Bibliographic details
- Authors: Yungsan Kim, Woon Gyu Choi
- Published: June 1, 2003
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451855005.001
Overview
- Authors: Yungsan Kim, Woon Gyu Choi
- Publication date: June 1, 2003
- Series: Working Paper No. 2003/127
- Summary of research objective: Using disaggregated panel data to examine how firms extend and use trade credit and the macroeconomic implications of supplier financing arrangements.
Key findings
- Controlling for the transactions or asset management motive, both accounts payable and accounts receivable increase with tighter policy, implying that trade credit helps firms absorb the effect of a credit contraction.
- A comparison of S&P 500 firms with smaller firms provides no evidence that when policy is tightened, large firms play the role of credit suppliers more actively than small firms.
Subjects and keywords (as listed)
- Subject: Asset and liability management, Asset management, Bank credit, External debt, Government asset management, Labor, Monetary policy, Monetary tightening, Money, Public financial management (PFM), Trade credits, Wages
- Keywords: accounts payable, Accounts Receivable, AR-asset ratio, Asset management, Bank credit, C. accounts receivable regression, Credit Channel, E. net trade credit use regression, firm level, Government asset management, high-quality firm, monetary policy, Monetary tightening, Panel Data, panel datum, Policy shock, ratchet effect, retained earnings, S&P firm, short-term debt, smaller firm, Trade Credit, Trade credits, view of trade credit, Wages, WP
Data, length, and identifiers
- Pages: 34
- Volume: 2003
- Issue: 127
- DOI: https://doi.org/10.5089/9781451855005.001
- Series: Working Paper No. 2003/127
- Stock No: WPIEA1272003
- ISBN: 9781451855005
- ISSN: 1018-5941
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IMF Working Papers — Trade Credit and the Effect of Macro-Financial Shocks: Evidence From U.S. Panel Data (Yungsan Kim, Woon Gyu Choi), June 1, 2003.
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- Trade Credit and the Effect of Macro-Financial Shocks: Evidence from U.S. Panel Data - WP/03/127