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Author: Neeltje van Horen
Publisher: World Bank Publications
ISBN:
Category : Access to Finance
Languages : en
Pages : 27
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Book Description
Statistics show that the sale of goods on credit is widespread among firms even when they are capital constrained and thus face relatively high costs in providing trade credit. This study provides an explanation for this by arguing that customers who possess strong market power are able to increase their customer surplus by demanding to purchase the goods on credit. This gain in customer surplus increases with the degree of asymmetric information between buyer and seller with respect to product quality. Therefore, firms that are perceived as risky are especially subject to the market power of the customer and have to sell their goods on credit. Using detailed firm-level data from a large number of firms in Eastern Europe and Central Asia, this study finds evidence consistent with this hypothesis. It finds a strong positive correlation between customer market power and trade credit provision. Furthermore, this relationship is especially strong when the supplier is more risky and in countries with limited financial sector development or a weak legal system.
Author: Neeltje van Horen
Publisher: World Bank Publications
ISBN:
Category : Access to Finance
Languages : en
Pages : 27
Get Book Here
Book Description
Statistics show that the sale of goods on credit is widespread among firms even when they are capital constrained and thus face relatively high costs in providing trade credit. This study provides an explanation for this by arguing that customers who possess strong market power are able to increase their customer surplus by demanding to purchase the goods on credit. This gain in customer surplus increases with the degree of asymmetric information between buyer and seller with respect to product quality. Therefore, firms that are perceived as risky are especially subject to the market power of the customer and have to sell their goods on credit. Using detailed firm-level data from a large number of firms in Eastern Europe and Central Asia, this study finds evidence consistent with this hypothesis. It finds a strong positive correlation between customer market power and trade credit provision. Furthermore, this relationship is especially strong when the supplier is more risky and in countries with limited financial sector development or a weak legal system.
Author: Raymond Fisman
Publisher: World Bank Publications
ISBN:
Category : Credit
Languages : en
Pages : 34
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Book Description
Where do firms turn for financing in countries with poorly developed financial markets? One source is trade credit. And where formal financial intermediaries are deficient, industries that rely more on this source of financing grow faster.
Author: David Dranove
Publisher: John Wiley & Sons
ISBN: 1119042313
Category : Business & Economics
Languages : en
Pages : 544
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Book Description
This text is an unbound, three hole punched version. Access to WileyPLUS sold separately. Economics of Strategy, Binder Ready Version focuses on the key economic concepts students must master in order to develop a sound business strategy. Ideal for undergraduate managerial economics and business strategy courses, Economics of Strategy offers a careful yet accessible translation of advanced economic concepts to practical problems facing business managers. Armed with general principles, today's students--tomorrows future managers--will be prepared to adjust their firms business strategies to the demands of the ever-changing environment.
Author: Inessa Love
Publisher: World Bank Publications
ISBN:
Category : Bank loans
Languages : en
Pages : 34
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Book Description
"The authors study the effect of financial crises on trade credit in a sample of 890 firms in six emerging economies. They find that although provision of trade credit increases right after the crisis, it consequently collapses in the following months and years. The authors observe that firms with weaker financial position (for example, high pre-crisis level of short-term debt and low cash stocks and cash flows) are more likely to reduce trade credit provided to their customers. This suggests that the decline in aggregate credit provision is driven by the reduction in the supply of trade credit, which follows the bank credit crunch. The results are consistent with the "redistribution view" of trade credit provision, in which bank credit is redistributed by way of trade credit by the firms with stronger financial position to the firms with weaker financial stand "--World Bank web site.
Author: Neeltje van Horen
Publisher:
ISBN:
Category :
Languages : en
Pages : 27
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Book Description
Statistics show that the sale of goods on credit is widespread among firms even when they are capital constrained and thus face relatively high costs in providing trade credit. This study provides an explanation for this by arguing that customers who possess strong market power are able to increase their customer surplus by demanding to purchase the goods on credit. This gain in customer surplus increases with the degree of asymmetric information between buyer and seller with respect to product quality. Therefore, firms that are perceived as risky are especially subject to the market power of the customer and have to sell their goods on credit. Using detailed firm-level data from a large number of firms in Eastern Europe and Central Asia, this study finds evidence consistent with this hypothesis. It finds a strong positive correlation between customer market power and trade credit provision. Furthermore, this relationship is especially strong when the supplier is more risky and in countries with limited financial sector development or a weak legal system.
Author: Douglas Cumming
Publisher: OUP USA
ISBN: 0195391241
Category : Business & Economics
Languages : en
Pages : 937
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Book Description
Provides a comprehensive picture of issues dealing with different sources of entrepreneurial finance and different issues with financing entrepreneurs. The Handbook comprises contributions from 48 authors based in 12 different countries.
Author: Robert Bork
Publisher:
ISBN: 9781736089712
Category :
Languages : en
Pages : 536
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Book Description
The most important book on antitrust ever written. It shows how antitrust suits adversely affect the consumer by encouraging a costly form of protection for inefficient and uncompetitive small businesses.
Author: El Bachir Boukherouaa
Publisher: International Monetary Fund
ISBN: 1589063953
Category : Business & Economics
Languages : en
Pages : 35
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Book Description
This paper discusses the impact of the rapid adoption of artificial intelligence (AI) and machine learning (ML) in the financial sector. It highlights the benefits these technologies bring in terms of financial deepening and efficiency, while raising concerns about its potential in widening the digital divide between advanced and developing economies. The paper advances the discussion on the impact of this technology by distilling and categorizing the unique risks that it could pose to the integrity and stability of the financial system, policy challenges, and potential regulatory approaches. The evolving nature of this technology and its application in finance means that the full extent of its strengths and weaknesses is yet to be fully understood. Given the risk of unexpected pitfalls, countries will need to strengthen prudential oversight.
Author: Volodymyr Babich
Publisher:
ISBN: 9781680837964
Category : Technology & Engineering
Languages : en
Pages : 218
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Book Description
This monograph, as entitled, defines and describes the research field at the interface of Finance, Operations, and Risk Management (iFORM), provides examples where operations and finance overlap in meaningful ways, outlines promising research directions, and reduces the entry cost for anyone who would like to explore this new and exciting research field. The intended audience for this article includes both PhD students in operations management (OM), finance, and economics, who are looking for dissertation topics, and experienced researchers looking for novel applications of their expertise. The following outlines the rest of this article. Chapter 2 compares perspectives of finance and operations on the same topic: the firm. This motivates the key questions in finance, which is presented in the finance primer in chapter 3 and key questions in OM, which is presented in the OM primer in chapter 4. Having discussed key ideas from these disciplines separately, chapter 5 examines how OM and finance intersect in meaningful ways and suggest several promising research directions. Chapter 6 presents a "dos and don'ts list for publishing and reviewing iFORM papers.
Author: Fiona Fui-Hoon Nah
Publisher: Springer Nature
ISBN: 3030777502
Category : Computers
Languages : en
Pages : 667
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Book Description
This book constitutes the refereed proceedings of the 8th International Conference on HCI in Business, Government and Organizations, HCIBGO 2021, which was held as part of HCI International 2021 and took place virtually during July 24-29, 2021. The total of 1276 papers and 241 posters included in the 39 HCII 2021 proceedings volumes was carefully reviewed and selected from 5222 submissions. The papers included in this book were organized in topical sections as follows: electronic, mobile and ubiquitous commerce; HCI in finance and industry; work and business operations; innovation, collaboration, and knowledge sharing; and digital transformation and artificial intelligence.
