Trade credit in the Chinese Economy: An analysis of Listed Companies

DOI

10.2991/icefs-17.2017.31How to use a DOI?

Keywords

Trade credit, Chinese Economy, Account receivable, Account payable

Abstract

To provide a comprehensive analysis of trade credit activity in China, This study compared the use of the important non-formal financial channel, trade credit, between different sectors in China. This study further compared the use of trade credit between the firms of different scale. The results suggest that trade credit is an important source of funding for companies in the Chinese economy. Firstly, trade credit vary across industries, but tend to stay stable within industries and over time. Secondly, some manufacturing industries are net trade credit providers while others are net trade credit recipients. Thirdly, small and medium-sized firms (SMEs) are vital ingredient in the Chinese economy. SMEs can get short-term finance from their suppliers, however data show that SMEs in china are net trade credit provider due to weaker position in the market. The results highlight the importance of supply chain financing for market completion.

Copyright

© 2017, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Zhengcheng WU
PY  - 2017/01
DA  - 2017/01
TI  - Trade credit in the Chinese Economy: An analysis of Listed Companies
BT  - Proceedings of the 2017 International Conference on Economics, Finance and Statistics (ICEFS 2017)
PB  - Atlantis Press
SP  - 273
EP  - 277
SN  - 2352-5428
UR  - https://doi.org/10.2991/icefs-17.2017.31
DO  - 10.2991/icefs-17.2017.31
ID  - WU2017/01
ER  -