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Trade credit in Italy: Evidence from individual firm data

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  • Giuseppe Marotta

Abstract

In the first detailed study of the trade debt own cost for the Italian manufacturing firms it is shown that, comparing also self-defined bank lending rationed and non rationed firms, interfirm credit received is, if ever, only slightly more expensive than bank credit. Besides establishing the greater reactivity of credit received rather than granted to the external funds implicit cost, it is found that discount offered affects significantly credit granted. Estimates are robust splitting the sample according to various criteria; larger firms, probably because less financially constrained, react more strongly to sales reductions via longer credit and debt periods.

Suggested Citation

  • Giuseppe Marotta, 2000. "Trade credit in Italy: Evidence from individual firm data," Heterogeneity and monetary policy 0006, Universita di Modena e Reggio Emilia, Dipartimento di Economia Politica.
    • Handle: RePEc:mod:modena:0006
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    References listed on IDEAS

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    1. Ciżkowicz-Pękała Magda, 2017. "Trade credit: a benefit to get, a “must” to give? Motives behind trade credit use in Poland," Financial Internet Quarterly (formerly e-Finanse), Sciendo, vol. 13(4), pages 54-66, December.

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    More about this item

    Keywords

    Trade credit; Late payments; Credit rationing;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • 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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