Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/92800
Authors: 
Watanabe, Wako
Year of Publication: 
2004
Series/Report no.: 
ISER Discussion Paper, Institute of Social and Economic Research, Osaka University 616
Abstract: 
The main purpose of this paper is to present the empirical findings derived from the data of small firms that the availability of private and public information on the borrowing firm leads to diverse borrowing patterns among firms. Exploring logit models to characterize the firm's choice of a financial source, we find that firms whose information is poorly recorded, or who are publicly less recognized, are more likely to choose institutional lending over trade credit but as the recorded information becomes more organized and firms become more transparent, they tend to graduate to a greater use of trade credit.
Subjects: 
availability of information
institutional lending
trade credit
nested logit models
JEL: 
C25
G21
G32
Document Type: 
Working Paper

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