Trade credit is broadly used by firms around the world. Nevertheless, its use by firms in different locations is not homogeneous. A possible explanation for this are heterogeneous levels of creditor protection or quality in accounting systems among the different countries. Both features may...

This paper proposes an agency theory to explain trade credit policy. According to this theory we have developed an agency model based on the adverse selection and moral hazard phenomena arising from the relation between sellers and buyers. This model has been estimated by using panel data...

This paper explains trade credit policy based on the agency theory. According to this theory we have developed an agency model based on the adverse selection and moral hazard phenomena arising from the relation between sellers and buyers. This model has been estimated by using panel data...

This paper investigates the use of trade credit by firms from countries that have recently undergone a financial crisis. The paper examines a sample of 147 firms from Argentina, Brazil, and Turkey and finds empirical evidence that supports the substitution hypothesis between bank credit and...

This article explains trade credit policy based on the agency theory. According to this theory, we have developed an agency model based on the adverse selection and moral hazard phenomena arising from the relation between sellers and buyers. This model has been estimated by using panel data...