Business, Management and Accounting
4 years ago

Big buyers get long credit, risky buyers pay more: trade secrets revealed!

Review of Financial Studies
Trade Credit Contracts
Leora Klapper, Luc Laeven, Raghuram G. Rajan

Paper Summary

Related papers

Theme background image
Social Sciences
a year ago

Government initiative promotes cashless transactions for safer and easier online payments.

Covid-19 SME Impact
Crowdfunding Dynamics
Business, Management and Accounting
a year ago

High-ability managers revolutionize corporate trade credit policies for better supply chain management

Working Capital
Corporate Governance
Metal Composites
1 view
Business, Management and Accounting
2 years ago

Unlocking Long-Term Collaboration: How Payment Contracts Shape Trade Relationships

Working Capital
Corporate Governance
Firm Dynamics

The study looked at trade credit contracts between buyers and sellers. They analyzed almost 30,000 contracts to see who was involved and what terms were agreed upon. Unlike previous studies, they looked at both sides of the transaction and had multiple contracts for the same firms. The findings show that big, reliable buyers get longer credit terms from smaller suppliers. Riskier buyers are offered discounts for early payment.