Relationship of trade credit and the size of the firm--论文代写范文精选

他们还指出,决策者关心鼓励中小企业的融资,不同来源的贷款提供给中小企业,不仅仅是银行信贷。在金融paper代写范文的结果可以帮助决策者进行决策。

Abstract
  The paper focused on the relationship between the use of trade credit and the size of the firm. One participant noted that the finding was intuitive: a big firm uses trade credit because it can, not because it needs to, as it has ready access to bank credit. On the other hand, a small firm may not have access to bank credit at all, so might have to rely on trade credit as its only source of finance. Participants then discussed the policy implications of the paper’s findings. A participant commented on the stark variation in the use of trade credit across countries, and asked to what extent encouraging the use of trade credit could alleviate current bank lending constraints in the European Union. 

  They also noted that policymakers care about encouraging the financing of SMEs; having diverse sources of credit available to SMEs, not just bank credit, is therefore a positive. In response, Lars Norden noted that these were complex questions, but that the results of the paper could help policymakers and were robust. He explained that the paper finds that trade credit may help in a credit crisis but it cannot fully fill the gap left by a fall in bank credit provision. Accordingly, policymakers could not expect trade credit to be a full substitute. A participant noted that – from a monetary policy perspective – whether firms get a cash inflow or not makes a big difference for investment. Thus, trade credit and bank debt have different effects on firms’ investment; the latter provides cash, while the former does not. 

  Professor Norden added that this is a very important point that is also made in the paper. Furthermore, the participant pointed out that the crisis was so severe in the European Union and the reduction in bank credit so sharp that any funding firms could get was welcomed by policymakers. Turning to other aspects of the paper, a participant noted that it would be interesting to look at how credit days – not just the volume of trade credit – moved during the financial crisis, and whether these displayed the same inverse U-shaped relationship. The participant commented that the strongest firms in the crisis could still get bank credit, it was just more expensive. 

  The participant noted that, if there had been an increase in credit days, bigger firms might have been stretching out terms on their trade credit (which would likely have been cheaper than bank debt) and putting some of this cost burden on their suppliers, which were often smaller firms. If this were true, it would reinforce the findings of the paper. Another participant clarified that the credit days data in the paper are constructed mechanically from data on trade credit volume and days in a year. This means it is impossible to distinguish increases in the number of days due to changes in duration from changes due to trade credit volumes. 

  The participant suggested that this would be better addressed using survey data. Another participant noted that work done using Australian firm-level data for the unlisted business sector showed that the number of trade credit days expanded in Australia during the financial crisis. Regression analysis looking at bank debt and trade credit suggested that, in Australia, this increase was mostly firms substituting bank debt for trade credit. At the margin this substitution might have helped the SMEs through the crisis. Nonetheless, the participant cautioned that the experience in Australia may have been different to that in the European Union, because Australia largely escaped the credit crisis. 

  Discussion then moved to the paper’s methodology. One participant sought clarification about whether the paper used net flows or gross flows of trade credit. The participant explained that there are two ways to adjust to a negative bank debt shock – the first is to request an extension on accounts payable and the second is to call in accounts receivable. Both are interesting and important aspects of small business financing. Professor Norden responded that the paper looked only at accounts payable rather than accounts receivable or net trade credit. He explained that considering both sides of the balance sheet simultaneously raises endogeneity problems. Since the paper focused on SMEs, the paper did not consider bigger firms that might both borrow and lend trade credit.

  Accordingly, it made sense to focus only on accounts payable because smaller firms tend to be borrowing constrained. A participant queried why the direction of credit flows was used as the dependent variable, rather than both the size and the direction of the flows. Professor Norden responded that he had run the main regression model using the logarithm of credit flows rather than focusing on the direction. However, that specification was very noisy and there are identification problems when the flow is zero. Using the direction indicator simplified identification and it made the regressions more robust. 

  In response to comments by the discussant, Professor Norden noted that, of the four different cases presented in the substitution indicator constructed in the paper, the paper only considered the two cases where bank credit was falling because its focus was the financial crisis. Professor Norden explained that he plans to do follow-up work looking at increases in bank credit as well, and how the relationship with trade credit operates in an upswing. Professor Norden also touched on the KZ index as a measure of financial constraints. He noted that it is well established in the literature for big firms and has applications for small firms. However, he agreed that the suggestion of alternative indices based on size and age were interesting alternatives to consider in further work.(论文代写)

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