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Trade Credit Borrowing Amidst the COVID-19 Pandemic: Evidence from Turkish Publicly Traded Firms

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  • Bahadır Karakoç

    (Samsun University)

Abstract

This study focuses on the effects of the COVID-19 pandemic on trade credit borrowing among publicly traded Turkish firms. Changes in the amount and duration of trade credit utilized by firms during the pandemic are investigated using panel data analysis, including Difference Generalized Method of Moments (GMM) and Fixed Effects Ordinary Least Squares (FE-OLS) methods. The findings reveal a significant increase in both the amount and duration of trade credit obtained from suppliers amidst the pandemic's economic disruptions. This trend is particularly pronounced among high-debt and low-cash firms, suggesting a heightened reliance on trade credit as a financing mechanism.

Suggested Citation

  • Bahadır Karakoç, 2024. "Trade Credit Borrowing Amidst the COVID-19 Pandemic: Evidence from Turkish Publicly Traded Firms," Journal of Finance Letters (Maliye ve Finans Yazıları), Maliye ve Finans Yazıları Yayıncılık Ltd. Şti., vol. 39(122), pages 110-133, October.
    • Handle: RePEc:acc:malfin:v:39:y:2024:i:122:p:110-133
    DOI: https://doi.org/10.33203/mfy.1476916
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    More about this item

    Keywords

    Covid-19 pandemic; crisis; trade credit;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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