(Download) "Empirical Evidence of Trade Credit Uses of Brazilian Publicly-Listed Companies (Report)" by Brazilian Administration Review - BAR # Book PDF Kindle ePub Free

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eBook details

• Title: Empirical Evidence of Trade Credit Uses of Brazilian Publicly-Listed Companies (Report)
• Author : Brazilian Administration Review - BAR
• Release Date : January 01, 2010
• Genre: Business & Personal Finance,Books,
• Pages : * pages
• Size : 300 KB

Description

Introduction Trade credit is credit extended by suppliers to buyers, particularly during sales negotiations. Schwartz (1974) reports that trade credit is a complement to bank debt and capital market debt. It diminishes the efficiency of an aggregate monetary control, but on the other hand it mitigates discriminatory effects caused by a restrictive monetary policy, which tends to affect mainly small and medium sized enterprises [SME]. Because of this credit constraint, trade credit is viewed as a financial source of greater importance in countries where financial institutions and capital markets are not fully developed. It does not mean, however, that credit extension (or trade credit) is not relevant in countries with well-developed financial institutions such as the US or Germany. Trade credit is also viewed as an important source of financing for SME, since these firms normally have less access to sources of financing (and are also more affected by restrictive monetary policies). However, trade credit is much used by large firms. In our sample, for example, trade credit use represents around 8% of total debt, or 1/3 of firms' financing (excluding corporate debt).

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