COVID-19 and trade credit speed of adjustment

This paper examines the extent to which COVID-19 affects corporate trade credit policy. We find that COVID-19 significantly accelerates US firms’ convergency speed toward the target trade credit. In addition, we find that firms subject to higher ex-ante operational risk tend to adjust trade credit t...

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Detalles Bibliográficos
Autor principal: Luo, Haowen
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Elsevier Inc. 2022
Materias:
Article
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9643102/
https://www.ncbi.nlm.nih.gov/pubmed/36406742
http://dx.doi.org/10.1016/j.frl.2021.102541
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author Luo, Haowen
author_facet Luo, Haowen
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description This paper examines the extent to which COVID-19 affects corporate trade credit policy. We find that COVID-19 significantly accelerates US firms’ convergency speed toward the target trade credit. In addition, we find that firms subject to higher ex-ante operational risk tend to adjust trade credit toward the target faster than those with fewer risk exposures. Overall, our evidence is consistent with the risk avoidance explanation for trade credit policy changes in the presence of adverse shocks.
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spelling pubmed-96431022022-11-14 COVID-19 and trade credit speed of adjustment Luo, Haowen Financ Res Lett Article This paper examines the extent to which COVID-19 affects corporate trade credit policy. We find that COVID-19 significantly accelerates US firms’ convergency speed toward the target trade credit. In addition, we find that firms subject to higher ex-ante operational risk tend to adjust trade credit toward the target faster than those with fewer risk exposures. Overall, our evidence is consistent with the risk avoidance explanation for trade credit policy changes in the presence of adverse shocks. Elsevier Inc. 2022-06 2021-11-09 /pmc/articles/PMC9643102/ /pubmed/36406742 http://dx.doi.org/10.1016/j.frl.2021.102541 Text en © 2021 Elsevier Inc. All rights reserved. Since January 2020 Elsevier has created a COVID-19 resource centre with free information in English and Mandarin on the novel coronavirus COVID-19. The COVID-19 resource centre is hosted on Elsevier Connect, the company's public news and information website. Elsevier hereby grants permission to make all its COVID-19-related research that is available on the COVID-19 resource centre - including this research content - immediately available in PubMed Central and other publicly funded repositories, such as the WHO COVID database with rights for unrestricted research re-use and analyses in any form or by any means with acknowledgement of the original source. These permissions are granted for free by Elsevier for as long as the COVID-19 resource centre remains active.
spellingShingle Article
Luo, Haowen
COVID-19 and trade credit speed of adjustment
title COVID-19 and trade credit speed of adjustment
title_full COVID-19 and trade credit speed of adjustment
title_fullStr COVID-19 and trade credit speed of adjustment
title_full_unstemmed COVID-19 and trade credit speed of adjustment
title_short COVID-19 and trade credit speed of adjustment
title_sort covid-19 and trade credit speed of adjustment
topic Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9643102/
https://www.ncbi.nlm.nih.gov/pubmed/36406742
http://dx.doi.org/10.1016/j.frl.2021.102541
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