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Author: Raymond Fisman
Publisher: World Bank Publications
Published: 2001
Total Pages: 34
ISBN-13:
DOWNLOAD EBOOKWhere do firms turn for financing in countries with poorly developed financial markets? One source is trade credit. And where formal financial intermediaries are deficient, industries that rely more on this source of financing grow faster.
Author: Mr.Guido De Blasio
Publisher: International Monetary Fund
Published: 2003-08-01
Total Pages: 29
ISBN-13: 1451858124
DOWNLOAD EBOOKThe paper examines micro data on Italian manufacturing firms' inventory behavior to test the Meltzer (1960) hypothesis according to which firms substitute trade credit for bank credit during periods of monetary tightening. It finds that their inventory investment is constrained by the availability of trade credit. As for the magnitude of the substitution effect, however, this study finds that it is not sizable. This is in line with the micro theories of trade credit and the evidence on actual firm practices, according to which credit terms display modest variations over time.
Author: Francesco Manaresi
Publisher: International Monetary Fund
Published: 2019-05-17
Total Pages: 75
ISBN-13: 1498315917
DOWNLOAD EBOOKWe study the impact of bank credit on firm productivity. We exploit a matched firm-bank database covering all the credit relationships of Italian corporations, together with a natural experiment, to measure idiosyncratic supply-side shocks to credit availability and to estimate a production model augmented with financial frictions. We find that a contraction in credit supply causes a reduction of firm TFP growth and also harms IT-adoption, innovation, exporting, and adoption of superior management practices, while a credit expansion has limited impact. Quantitatively, the credit contraction between 2007 and 2009 accounts for about a quarter of observed the decline in TFP.
Author: Vojislav Maksimovic
Publisher: World Bank Publications
Published: 2008
Total Pages: 77
ISBN-13:
DOWNLOAD EBOOKAbstract: China is often mentioned as a counterexample to the findings in the finance and growth literature since, despite the weaknesses in its banking system, it is one of the fastest growing economies in the world. The fast growth of Chinese private sector firms is taken as evidence that it is alternative financing and governance mechanisms that support China's growth. This paper takes a closer look at firm financing patterns and growth using a database of 2,400 Chinese firms. The authors find that a relatively small percentage of firms in the sample utilize formal bank finance with a much greater reliance on informal sources. However, the results suggest that despite its weaknesses, financing from the formal financial system is associated with faster firm growth, whereas fund raising from alternative channels is not. Using a selection model, the authors find no evidence that these results arise because of the selection of firms that have access to the formal financial system. Although firms report bank corruption, there is no evidence that it significantly affects the allocation of credit or the performance of firms that receive the credit. The findings suggest that the role of reputation and relationship based financing and governance mechanisms in financing the fastest growing firms in China is likely to be overestimated.
Author: Guido de Blasio
Publisher:
Published: 2006
Total Pages: 28
ISBN-13:
DOWNLOAD EBOOKThe paper examines micro data on Italian manufacturing firms` inventory behavior to test the Meltzer (1960) hypothesis according to which firms substitute trade credit for bank credit during periods of monetary tightening. It finds that their inventory investment is constrained by the availability of trade credit. As for the magnitude of the substitution effect, however, this study finds that it is not sizable. This is in line with the micro theories of trade credit and the evidence on actual firm practices, according to which credit terms display modest variations over time.
Author: Douglas Cumming
Publisher: OUP USA
Published: 2012-03-22
Total Pages: 937
ISBN-13: 0195391241
DOWNLOAD EBOOKProvides a comprehensive picture of issues dealing with different sources of entrepreneurial finance and different issues with financing entrepreneurs. The Handbook comprises contributions from 48 authors based in 12 different countries.
Author:
Publisher: World Bank Publications
Published: 2004
Total Pages: 36
ISBN-13:
DOWNLOAD EBOOKAuthor: Margherita Bottero
Publisher: International Monetary Fund
Published: 2019-02-28
Total Pages: 59
ISBN-13: 1498300855
DOWNLOAD EBOOKWe study negative interest rate policy (NIRP) exploiting ECB's NIRP introduction and administrative data from Italy, severely hit by the Eurozone crisis. NIRP has expansionary effects on credit supply-- -and hence the real economy---through a portfolio rebalancing channel. NIRP affects banks with higher ex-ante net short-term interbank positions or, more broadly, more liquid balance-sheets, not with higher retail deposits. NIRP-affected banks rebalance their portfolios from liquid assets to credit—especially to riskier and smaller firms—and cut loan rates, inducing sizable real effects. By shifting the entire yield curve downwards, NIRP differs from rate cuts just above the ZLB.
Author: Mr.Yungsan Kim
Publisher: International Monetary Fund
Published: 2003-06-01
Total Pages: 36
ISBN-13: 1451855001
DOWNLOAD EBOOKMany studies examine why firms are financed by their suppliers, but few empirical studies look at the macroeconomic implications of such financial arrangements. Using disaggregated panel data, we examine how firms extend and use trade credit. We find that, controlling for the transactions or asset management motive, both accounts payable and receivable increase with tighter policy, implying that trade credit helps firms absorb the effect of a credit contraction. A comparison of S&P 500 firms with smaller firms, however, provides no evidence that when policy is tightened, large firms play the role of credit suppliers more actively than small firms.
Author: Jean-Pierre Chauffour
Publisher: World Bank Publications
Published: 2011-06-22
Total Pages: 433
ISBN-13: 0821387499
DOWNLOAD EBOOKThis volume provides insights on the role of trade finance in the 2008-2009 ?Great Trade Collapse" and the subsequent role of governments and institutions to help restore trade finance markets. It is the product of a fruitful collaboration between the World Bank Group, international financial partners, private banks, and academia.
