The Exploitation of Relationships in Financial Distress: The Case of Trade Credit

By Benjamin S. Wilner. 2000

752 citations recorded by the source corpus.

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Citations in the corpus

Corporate trade credit and inventories: New evidence of a trade-off from accounts payable and receivable (2009, background): “…2000 and Mateut, Bougheas and Mizen, 2006), insurance (Cunat, 2007), product quality (Lee and Stove, 1993 and Long, Malitz and Ravid, 1994) bankruptcy (Frank and Maksimovic, 2004 and Wilner, 2000) opportunistic behavior (Burkart and Ellingsen, 2004) and externalities (Daripa and Nilsen, 2005).”
Customer Concentration and Loan Contract Terms (2017, positive): “Wilner (2000) argues that suppliers tend to grant 27 more concessions to financially-distressed customers in order to maintain product market relationships.”
Trade Credit, Bank Credit, and Flight to Quality: Evidence from French SMEs (2015, background): “This finding is in line with other empirical studies in trade credit indicating that when bank credit is scarce, trade credit is often used as a substitute (e.g., Couppey-Soubeyran and Héricourt 2011; Fisman and Love 2003; Nilsen 2002; Petersen and Rajan 1997; Rodriguez-Rodriguez 2006; Wilner 2000).”
Credit channel, trade credit channel, and inventory investment: Evidence from a panel of UK firms (2006, background): “Furthermore, Cunat (2003) documents that when customers experience temporary liquidity shocks that may threaten their survival, suppliers tend to forgive their debts and extend their maturity periods at no extra cost (also see Petersen and Rajan, 1997; and Wilner, 2000).”
Trade credit, collateral liquidation, and borrowing constraints (2010, background): “A2 A 27 ) with 1 > 0.”
Working capital level influence on SME profitability (2016, neutral): “Increasing trade credit level may strengthen supplier/customer long-term relationship (Wilner, 2000).”
How Inventory Is (Should Be) Financed: Trade Credit in Supply Chains with Demand Uncertainty and Costs of Financial Distress (2013, positive): “…and Longhofer and Santos (2003), for example, argue that suppliers have an advantage in liquidating goods in case of their buyers' default, whereas Wilner (2000) and Cuñat (2007) suggest that suppliers are more willing to offer help when their customers are in trouble (e.g., due to liquidity…”
Cash conversion cycle and corporate performance: Global evidence (2018, background): “In terms of accounts payables, companies may take advantage of crucial discounts for early payments if they reduce supplier financing (Ng et al., 1999; Wilner, 2000).”
Trade Credit, Relationship-specific Investment, and Product Market Power (2015, neutral): “Our finding that the relations of TC with RSI and FMP are more pronounced when the economic interdependence between the buer and supplier firms is greater is consistent with Wilner (2000) who argues that when bilateral relations are more important,TC is more likely than bank financing.”
Trade Credit and the Effect of Macro-Financial Shocks: Evidence from U.S. Panel Data (2005, background): “Wilner (2000) offers a theoretical explanation for why the interest rate on trade credit is much higher than that on bank loans.”
What you sell is what you lend? Explaining trade credit contracts (2004, positive): “The absence of a risk premium may also be interpreted along the lines of Wilner (2000) who argues that suppliers subsidize their (important) customers in financial distress.”
Effects of Working Capital Management on SME Profitability (2007, background): “In fact, the opportunity cost may exceed 20 percent, depending on the discount percentage and the discount period granted ( Wilner, 2000”