Trade Credit and Bank Relationships: Evidence from Pre-World War I Belgium
International audience ; We investigate the determinants of trade credit granted by suppliers in a historical environment which was characterized by high information asymmetries and strong banks, focusing on the role of bank-firm relationships. Our results, which are based on a unique sample of 535 firm-year observations for 125 listed Belgian firms in four dominant industries in the period 1905-1909, are generally consistent with the financing role of trade credit. They suggest that trade credit was a tool for channeling funds from firms with close bank ties to other firms, which is consisten... Mehr ...
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| Dokumenttyp: | Artikel |
| Erscheinungsdatum: | 2010 |
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HAL CCSD
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| Schlagwörter: | Social Sciences & Humanities |
| Sprache: | Englisch |
| Permalink: | https://search.fid-benelux.de/Record/base-27387190 |
| Datenquelle: | BASE; Originalkatalog |
| Powered By: | BASE |
| Link(s) : | https://hal.archives-ouvertes.fr/hal-00582303 |
International audience ; We investigate the determinants of trade credit granted by suppliers in a historical environment which was characterized by high information asymmetries and strong banks, focusing on the role of bank-firm relationships. Our results, which are based on a unique sample of 535 firm-year observations for 125 listed Belgian firms in four dominant industries in the period 1905-1909, are generally consistent with the financing role of trade credit. They suggest that trade credit was a tool for channeling funds from firms with close bank ties to other firms, which is consistent with findings for contemporary developing countries.