Template-Type: ReDIF-Article 1.0

Author-Name: Dániel Havran
Author-Workplace-Name: Corvinus University of Budapest
Author-Email: daniel.havran@uni-corvinus.hu
Author-Person: pha897

Author-Name: Péter Kerényi
Author-Workplace-Name: Corvinus University of Budapest
Author-Email: peter.kerenyi@uni-corvinus.hu

Author-Name: Attila Víg
Author-Workplace-Name: Corvinus University of Budapest
Author-Email: attila.vig@uni-corvinus.hu

Title: Trade Credit or Bank Credit? – Lessons Learned from Hungarian Firms between 2010 and 2015

Abstract: This paper addresses the way in which trade credit was used by Hungarian firms
in the period between 2010 and 2015. Relying on Burkart and Ellingsen’s (2004)
theory of trade credit, we use panel data on 14,554 Hungarian firms (including
68 large corporations) to estimate the relationship of trade credit and short-term
bank credit. Estimated on sub-samples broken down by profitability, our results only
confirm a complementary relationship. We also examine the relationship separately
for each category of firm size. We found a complementary relationship for small
and microenterprises, whereas the results obtained for large corporations imply a
substitution effect. In Hungary, in the period after 2013 accounts payable tended
to be increased by financially constrained micro and medium-sized enterprises and
mostly held steady by financially unconstrained firms.

Classification-JEL: G32, C23
Keywords: trade credit, financial constraints
Pages: 86-121
Volume: 16
Issue: 4
Year: 2017
File-URL: http://english.hitelintezetiszemle.hu/letoltes/fer-16-4-st4-havran-kere-nyi-vi-g.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:16:y:2017:i:4:p:86-121