Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/320012 
Year of Publication: 
2020
Series/Report no.: 
CASMEF Working Paper Series No. WP 2020/06
Publisher: 
LUISS Guido Carli, Department of Economics and Finance, Arcelli Centre for Monetary and Financial Studies, Rome
Abstract: 
Using a unique sample of Italian manufacturing firms, we investigate the impact of relationship lending on firms' use of trade credit. We find that firms with close and long-lasting relationships with their main bank obtain higher amounts of trade credit. This result is robust to alternative definitions of trade credit and relationship lending, and to different estimation techniques. This positive link is especially strong for firms that use to provide soft information to their lenders and for companies with greater abilities to create valuable relationships with business parties.
Subjects: 
Trade credit
relationship lending
soft information
JEL: 
D22
G21
G32
Document Type: 
Working Paper

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