search query: @indexterm Credit / total: 493
reference: 118 / 493
| Author: | Wilson, N. Summers, B. |
| Title: | Trade Credit Terms Offered by Small Firms: Survey Evidence and Empirical Analysis |
| Journal: | Journal of Business Finance and Accounting
2002 : VOL. 29:3-4, p. 317-352 |
| Index terms: | TRADE CREDIT SMALL BUSINESS FINANCE |
| Language: | eng |
| Abstract: | Trade credit has been shown to be an important source of short-term finance for smaller firms but small firms are also suppliers of trade credit. There is little empirical evidence on the credit granting decisions of small firms. Previous empirical work (Petersen and Rajan, 1997; and Ng, Smith and Smith, 1999) has focused on credit granting and investment in accounts receivable in larger firms. In this paper the authors look at the influences on credit granting for the smallest firms, using a sample of firms with an average of 10 employees. As in previous studies the authors find that product and demand characteristics influence credit terms. Moreover, the authors find evidence that firm size affects credit extension choices directly by setting limits on the possibilities for economies of scale. |
SCIMA