报告题目: |
Trade Credit and Suppliers’ Competition |
报告人: |
Dr. Jiri Chod, Boston College |
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Associate Professor at the Carroll School of Management, Boston College
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报告时间: |
2016-03-23 14:00 |
报告地点: |
舜德楼北511 |
主办单位: |
清华大学工业工程系 |
简介: |
This paper examines how product market competition affects firms' willingness to offer trade credit. We consider a financially constrained retailer who sources from multiple suppliers, each of whom can increase its sales by providing trade credit. By offering trade credit, any given supplier relaxes the retailer’s financial constraint, which automatically benefits the other suppliers. This externality of providing trade credit is particularly detrimental when the free-riding suppliers sell substitutable products. Our model helps to explain, among other, why suppliers of differentiated products extend more trade credit than suppliers of standardized goods. In addition, our model predicts and empirically validates a negative relation between a firm's reliance on trade credit and the number of its suppliers. |
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