How does the market power affect the trade credit?
LIU Huan1, DENG Lu2, LIAO Ming-qing3
1. School of Business, Renmin University of China, Beijing 100872, China; 2. School of Economics and Management, Beihang University, Beijing 100191, China; 3. School of Business Administration, South China University of Technology, Guangzhou 510640, China
Abstract：Based on the data of A-share listed companies in China from 2005 to 2013, the paper investigates the relationship between market power and the trade credit of a company. The paper shows that market power has a positive effect on the trade credit, the company who has relative stronger market power will obtain more trade credit, and the market power is especially important to the company who is in a competitive market and facing financial constraint. The future research talks about the financial crisis, and finds that companies facing financial constraint tend to obtain more trade credit by their market power after the 2008 financial crisis, and the phenomenon doesn't exist in the companies who don't face financial constraint. The paper verifies the market competition hypothesis and enriches the research category of the hypothesis. In summary, the conclusion of the paper will give us a chance to understand the effect mechanism of trade credit, and has some policy implications.
刘欢, 邓路, 廖明情. 公司的市场地位会影响商业信用规模吗?[J]. 系统工程理论与实践, 2015, 35(12): 3119-3134.
LIU Huan, DENG Lu, LIAO Ming-qing. How does the market power affect the trade credit?. Systems Engineering - Theory & Practice, 2015, 35(12): 3119-3134.
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2015, Vol. 35 
