1 option
Curbing Shocks to Corporate Liquidity: The Role of Trade Credit / Niklas Amberg, Tor Jacobson, Erik von Schedvin, Robert Townsend.
- Format:
- Book
- Author/Creator:
- Amberg, Niklas.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w22286.
- NBER working paper series no. w22286
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Other Title:
- Curbing Shocks to Corporate Liquidity
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2016.
- Summary:
- Using data on exogenous liquidity losses generated by the fraud and failure of a cash-in-transit firm, we demonstrate a causal impact on firms' trade credit usage. We find that firms manage liquidity shortfalls by increasing the amount of drawn credit from suppliers and decreasing the amount issued to customers. The compounded trade credit adjustments are at least as great, if not greater than corresponding adjustments in cash holdings, suggesting that trade credit positions are economically important sources of reserve liquidity. The underlying mechanism in trade credit adjustments is in part due to shifts in credit durations--both upstream and downstream.
- Notes:
- Print version record
- May 2016.
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.