Trade credit in SMEs: a quantile regression approach

This article analyses the determinants of the trade credit in Spanish manufacturing small and medium-sized enterprises (SMEs) from a new perspective. Specifically, we focus on the relationship between trade credit and other relevance financial resources: bank credit and self-financing. For the first...

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Bibliographic Details
Published inApplied economics letters Vol. 23; no. 13; pp. 945 - 948
Main Authors Canto-Cuevas, Francisco-Javier, Palacín-Sánchez, María-José, di Pietro, Filippo
Format Journal Article
LanguageEnglish
Published London Routledge 01.09.2016
Taylor & Francis LLC
Subjects
bank credit
Credit insurance
Credit management
Credit policy
Economic analysis
quantile regression
Small & medium sized enterprises-SME
SME
Trade credit
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Summary:This article analyses the determinants of the trade credit in Spanish manufacturing small and medium-sized enterprises (SMEs) from a new perspective. Specifically, we focus on the relationship between trade credit and other relevance financial resources: bank credit and self-financing. For the first time in the literature, a quantile regression approach is used, which takes into account the heterogeneity of firms in different quantiles of trade credit distribution. Our results show that the relationship between trade credit and other financial sources presents dissimilarities, including differences in sign, on SMEs with different degrees of trade credit. Our findings help to clarify the confusing results achieved in previous research on this topic.
ISSN:1350-4851
1466-4291
DOI:10.1080/13504851.2015.1122727