Trade Credit, the Financial Crisis, and SME Access to Finance
By Santiago Carbó-Valverde, Francisco Rodríguez-Fernández, Gregory F. Udell. 2013
382 citations recorded by the source corpus.
Mounting evidence indicates that firms, particularly SMEs, suffered from a significant credit crunch during this crisis. Little research exists on how SMEs coped with this problem due to a lack of data in the U.S. and elsewhere. We analyse for the first time whether trade credit provided an alternative source of external finance to SMEs during the crisis. Using firm-level Spanish data we find that credit constrained SMEs depend on trade credit, but not bank loans, and that the intensity of this dependence increased during the financial crisis. Unconstrained firms, in contrast, are dependent on bank loans not trade credit.
Subfields: Accounting, Economics and Econometrics
View Paper: https://www.semanticscholar.org/paper/f45b03d176857c118cf447ed224fb60239c0e321
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In Accounting
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Citations in the corpus
- European trade credit use and SME survival (2018, methodology): “The Carbo-Valverde et al. (2016) study focuses on 40,000 Spanish firms over the period 1994 to 2010, and we extend this analysis to a balanced panel of 107,776 firms from 13 EU countries.”
- The differential impact of leverage on the default risk of small and large firms (2020, background): “Carbo-Valverde et al. (2016) show how trade creditors may function as lender of last resort when SMEs are financially constrained and cannot access bank lending.”
- How Does Financial Literacy Promote Sustainability in SMEs? A Developing Country Perspective (2019, background): “[111], who revealed that financial literacy was positively related to awareness of different sources of finance and the ability to identify appropriate sources of finance for a business.”
- The Role of a Manager’s Intangible Capabilities in Resource Acquisition and Sustainable Competitive Performance (2019, background): “Regrettably, many SMEs due to a lack of financial management skills are unable to access eminent resources [54].”