Trade Credit, Collateral, and Adverse Selection

By Vojislav Maksimovic, Murray Z. Frank. 2005

248 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/be5435d3e58ac50909e8eac1d186aaaff6834743

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Citations in the corpus

In-Kind Finance: A Theory of Trade Credit (2004, background): “…quality (Smith, 1987; Yul W. Lee and John D. Stowe, 1993; and Michael S. Long et al., 1993); on suppliers’ advantage in liquidating collateral (Murray Frank and Maksimovic, 1998); on tax effects (Ivan E. Brick and William K. H. Fung, 1984), and on long-term buyer/ seller relationships (Benjamin…”
Trade Credit: Suppliers as Debt Collectors and Insurance Providers (2003, unknown): “It is useful to define ∆ = βαR 1−βθ−(β−δ)αR−δ(α−γ)r so the expression for d becomes: d = ∆ (δ(R− r)(α− γ)− βυL)− βυL (10)”
Entrepreneurial Finance and Innovation: An Introduction and Agenda for Future Research (2014, background): “This finding is important because it helps us better understand the role of trade credit as a source of financing in small companies, over and above that documented in the existing literature (see, e.g., Petersen and Rajan 1997; Frank and Maksimovic 2005; Burkart, Ellingsen, and Giannetti 2011).”
Trade credit and supplier competition (2019, background): “…Biais and Gollier, 1997; Chod, Trichakis, and Tsoukalas, 2017), monitoring borrowers’ revenue (e.g., Jain, 2001), enforcing credit repayment (e.g., Cuñat, 2007), renegotiating debt (e.g., Wilner, 2000), or salvaging repossessed inventory upon borrower’s default (e.g., Frank and Maksimovic, 2005).”
Trade credit, collateral liquidation, and borrowing constraints (2010, background): “is above the level defined by ( 10 ) and trade credit is taken for incentive motives.”