000			01691nam a22001577a 4500
999			_c518706 _d518706
008			211028b ||||| |||| 00| 0 eng d
100			_aKumar, Nitin et al _929811
245			_aAn analysis of trade credit behaviour of Indian firms
260			_aSouth Asia Economic Journal
300			_a22(1), Mar, 2021: p.132-154
520			_aTrade credit transactions are quite common for businesses. The article carries out the trade credit analysis for an emerging economy, namely Indian corporate sector employing rich information dataset covering multiple industries such as manufacturing, services, construction and others, since the period of financial crisis including both firm specific and macro-economic factors. The annual dataset spans 13 years from 2006 to 2018 covering the crisis period. Applying dynamic panel framework, it is found that the inventory management and macro indicators are significant in determining trade credit for Indian firms. While trade payable is chiefly driven by raw material inventory, firms having reasonable stock of raw or finished goods inventory are less likely to offer trade credit. Large-sized firms are found to be both leading consumers and suppliers of the trade credit. The pecking order theory is clearly validated with net profits being preferred over the trade credit that is a more expensive source of finance. Credit from formal financial sources is found to act as a substitute to trade credit borrowing.- Reproduced
650			_aTrade credit, Corporate finance, Bank borrowing, Macro economy, Panel data, Generalized method of moments _928308
773			_aSouth Asia Economic Journal
906			_aTRADE CREDIT
942			_cAR