Publication:
Unpacking the black box of trade credit to socially responsible customers

Simple item page
dc.affiliation.dptoUC3M. Departamento de Economía de la Empresaes
dc.contributor.authorZhang, Yanlei
dc.contributor.authorGarcía-Lara, Juan M.
dc.contributor.authorTribó, Josep A.
dc.contributor.funderMinisterio de Economía y Competitividad (España)es
dc.contributor.funderAgencia Estatal de Investigación (España)es
dc.contributor.funderComunidad de Madrides
dc.date.accessioned2022-06-30T14:18:02Z
dc.date.available2022-06-30T14:18:02Z
dc.date.issued2020-10-01
dc.description.abstractWe investigate whether suppliers value customer firms’ socially responsible activities by examining the relation between corporate social responsibility (CSR) and firms’ access to trade credit. We posit that firms with better social performance are more likely to receive trade credit because suppliers view customers’ CSR activities as a signal of trustworthiness and of the capacity to meet financial obligations. In addition to this direct channel, we describe other channels: a) trade credit opens the possibility for suppliers to secure a share of their customers’ future business opportunities, which are expected to be higher for socially responsible firms, and b) the risk associated with the diffusion of negative shocks through the supply chain due to trade credit is lower for socially responsible firms, making them more attractive partners for suppliers. Consistent with our predictions, we find that socially responsible customers receive more trade credit from suppliers. This relation is more pronounced in situations where the aforementioned channels are more relevant: namely, when the financial health of a customer is of greater importance to its suppliers; when there are greater information asymmetries between suppliers and customers due to a lack of close transactional relationships; when socially responsible activities are more likely to generate growth; and when suppliers are exposed to higher risk in the customer-supplier relationship. We also document that during the global financial crisis, socially responsible customers offered backward liquidity provision to suppliers by reducing their use of trade credit, which represents an extra benefit of having socially responsible customers in production networks.en
dc.description.sponsorshipWe acknowledge financial support from the Spanish Ministry of Economy and Competitiveness (ECO2012-36559, ECO2015-68715-R-MINECO/FEDER, PGC2018-097187-B-I00, ECO2013-48328, ECO2016-77579 and WRDS-UC3M: Infrastructure for large scale data processing, FEDER UNC315-EE-3636), from a Comunidad de Madrid grant (EARLYFIN-CM, #S2015/HUM-3353), from Copenhagen Business School and from the EU's European Social Fund.en
dc.identifier.bibliographicCitationZhang, Y., García Lara, J. M., & Tribó, J. A. (2020). Unpacking the black box of trade credit to socially responsible customers. Journal of Banking & Finance, 119, p. 105908.en
dc.identifier.doihttps://doi.org/10.1016/j.jbankfin.2020.105908
dc.identifier.issn0378-4266
dc.identifier.publicationtitleJOURNAL OF BANKING & FINANCEes
dc.identifier.publicationvolume119es
dc.identifier.urihttps://hdl.handle.net/10016/35360
dc.identifier.uxxiAR/0000027591
dc.language.isoenges
dc.publisherElsevieres
dc.relation.projectIDGobierno de España. ECO2012-36559es
dc.relation.projectIDGobierno de España. ECO2013-48328-C3-3-Pes
dc.relation.projectIDComunidad de Madrid. S2015/HUM-3353es
dc.relation.projectIDGobierno de España. ECO2015-68715-Res
dc.relation.projectIDGobierno de España. ECO2016-77579-C3-2-Pes
dc.relation.projectIDGobierno de España. UNC315-EE-3636es
dc.relation.projectIDGobierno de España. PGC2018-097187-B-I00es
dc.rights© Elsevieres
dc.rightsAtribución-NoComercial-SinDerivadas 3.0 España*
dc.rights.accessRightsopen accessen
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/es/*
dc.subject.ecienciaEconomíaes
dc.subject.ecienciaEmpresaes
dc.subject.jelG32
dc.subject.jelG34
dc.subject.jelM21
dc.subject.otherCorporate Social Responsibility (CSR)en
dc.subject.otherCustomer-supplier relationshipsen
dc.subject.otherTrade crediten
dc.titleUnpacking the black box of trade credit to socially responsible customersen
dc.typeresearch article*
dc.type.hasVersionAM*
dspace.entity.typePublication
Files
Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
unpacking_JBF_2020_ps.pdf
Size:
956.87 KB
Format:
Adobe Portable Document Format
Download
Collections
DEE - Artículos de Revistas