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- Title
Determinants and effects of trade credit financing: Evidence from the maritime shipping industry.
- Authors
Mantzari, Elisavet; Merika, Anna; Sigalas, Christos
- Abstract
This paper investigates the factors and effects of trade credit, as an alternative source of capital, by employing a generalized method of moments instrumenting for endogeneity based on a panel data set of public maritime shipping companies and compatible companies in other industries. Our study shows that the magnitude of trade credit is affected by profitability, financial leverage, company size, cost of capital, financial distress, institutional ownership, corporate power, corporate liquidity, asset intensity, and corporate growth. It also suggests that trade credit affects financial performance, equity value, and risk. These empirical findings yield important implications for principal financial officers, as discussed herein.
- Subjects
MARITIME shipping; STOCK ownership; FINANCIAL leverage; EXPORT credit; GENERALIZED method of moments; FINANCIAL performance; DISTRESSED securities
- Publication
European Financial Management, 2024, Vol 30, Issue 3, p1385
- ISSN
1354-7798
- Publication type
Article
- DOI
10.1111/eufm.12448