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http://dx.doi.org/10.5392/JKCA.2010.10.2.361

The Information Contents of Trade Credit  

Park, Rae-Soo (숙명여자대학교 경영학부)
Kim, Jae-Bok (국립경상대학교 경영학과)
Publication Information
The Journal of the Korea Contents Association / v.10, no.2, 2010 , pp. 361-371 More about this Journal
Abstract
This paper analyses the information contents of the trade credit in Korea. Trade credit is not only a settlement device in business cycle but also an information messenger in the financial market with an asymmetric information. The empirical results support that in addition to the bank loan, trade credit takes a significant role in that it provide a cheap and reliable credit to firms that have financial difficulties because of the information problem.
Keywords
Trade Credit; Information Costs; Information Asymmetry; Bank Loan; Credit Availability;
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