Suppliers’ Listing Status and Trade Credit Provision

62 Pages Posted: 11 Nov 2019

See all articles by Yomna Abdulla

Yomna Abdulla

Manchester Business School

Viet Anh Dang

Alliance Manchester Business School

Arif Khurshed

University of Manchester - Manchester Business School, Division of Accounting Finance

Date Written: October 28, 2019

Abstract

We show that public suppliers extend more trade credit than their private counterparts. The impact of stock market listing on accounts receivable is more pronounced among firms that are financially more constrained or more reliant on external finance. Moreover, firms significantly increase their trade credit provision following equity issuances in stock exchanges. These results are consistent with the argument that stock market listing status improves firms’ access to external sources of financing, especially equity capital, thus enhancing their ability to offer more trade credit to customers.

Keywords: trade credit, accounts receivable, public firms, private firms

JEL Classification: G30, G31, G32, G01

Suggested Citation

Abdulla, Yomna and Dang, Viet Anh and Khurshed, Arif, Suppliers’ Listing Status and Trade Credit Provision (October 28, 2019). Journal of Corporate Finance, Forthcoming. Available at SSRN: https://ssrn.com/abstract=3476630

Yomna Abdulla

Manchester Business School ( email )

Booth Street West
Manchester, M15 6PB
United Kingdom

Viet Anh Dang (Contact Author)

Alliance Manchester Business School ( email )

AMBS Crawford House
Booth Street West
Manchester, Greater Manchester M15 6PB
United Kingdom
+44(0)16127 50438 (Phone)

Arif Khurshed

University of Manchester - Manchester Business School, Division of Accounting Finance ( email )

Crawford House
Oxford Road
Manchester, M15 6PB
United Kingdom
+44 0 161 275 4475 (Phone)
+44 0 161 275 4023 (Fax)

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