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liabilities. However, its effects on SME performance and risk have been insufficiently studied. The competitiveness of SMEs … indicate that an SME’s SCF adoption positively impacts its performance but negatively impacts its risk. To further explore … exploring the multiple facets of SCF adoption and highlighting the moderating role of buyer-supplier relationship in SCF and SME …
Persistent link: https://www.econbiz.de/10014359254
The modern financial system features complicated financial intermediation chains, with each layer performing a certain degree of credit/maturity transformation. We develop a dynamic model in which an entrepreneur borrows from overlapping-generation households via layers of funds, forming a...
Persistent link: https://www.econbiz.de/10013314682
Using comprehensive bank-loan contract information, we show that the power of a firm relative to its suppliers eases its terms of bank financing, specifically through lower loan prices and less restrictive non-price contract terms. Our results are robust to controlling for product-market...
Persistent link: https://www.econbiz.de/10012856850
We explore how risks propagate through product market input-output networks by constructing degree centrality measures for customer and supplier industries. We find central supplier industries have higher market risks than central customer industries and posit that the provision of trade credit...
Persistent link: https://www.econbiz.de/10012903866
Trade credit extended to suppliers in the video game industry does not serve as a commitment device for large customers in determining which vendors to make relationship-specific investments in. Suppliers of video games are better off investing in relationships with trade creditors than seeking...
Persistent link: https://www.econbiz.de/10011991280
Buyers and suppliers have diverging interests about trade-credit maturities: buyers desire long payment periods as a source of cheap funding, while suppliers prefer swift payments to avoid locking up scarce liquidity in idle assets. A fast-growing financial product innovation - supply-chain...
Persistent link: https://www.econbiz.de/10014531950
I study the effect of banking relationships on the formation of new supply-chain relationships. I find that common banking relationships between a firm and a potential supplier increase the probability that the potential supplier will be selected to start a new supply-chain relationship. The...
Persistent link: https://www.econbiz.de/10012891805
Economic research has long focused on how individual behavioral biases can create spillover effects. In this paper, we consider why CEO overconfidence impacts other firms in the supply chain. Using data on supplier-customer relationships, we examine how suppliers respond to overconfident...
Persistent link: https://www.econbiz.de/10012861405
Persistent link: https://www.econbiz.de/10012105611
Despite the advantages that literature grants to factoring, its degree of adoption in small and medium-sized enterprises (SMEs) is low. The objective of the research is to establish the determinants in factoring adoption that allow greater access to financing by SMEs. For this purpose, a...
Persistent link: https://www.econbiz.de/10012308058