Hirofumi, UCHIDA; Iichiro, UESUGI; Masaki, HOTEI - Research Institute of Economy, Trade and Industry (RIETI) - 2010
Using unique data we test various trade credit theories and find the following. First, the length of a buyer-seller relationship has a positive impact on the use of trade credit, especially for longer-term credit. In contrast, short-term trade credit is extended based on buyers' hard...