Trade credit and bank relationships: evidence from pre-World War I Belgium

Deloof, Marc; Overfelt, Wouter van

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@article{ Deloof2010,
 title = {Trade credit and bank relationships: evidence from pre-World War I Belgium},
 author = {Deloof, Marc and Overfelt, Wouter van},
 journal = {Applied Economics},
 pages = {26},
 year = {2010},
 doi = {https://doi.org/10.1080/00036840903166269},
 urn = {https://nbn-resolving.org/urn:nbn:de:0168-ssoar-243054},
 abstract = {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.},
}