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Inventory composition and trade credit

Mateut, Simona; Mizen, Paul; Ziane, Ydriss


Professor of Monetary Economics

Ydriss Ziane


This empirical paper uses a panel of about half a million observations for French firms across economic sectors to investigate how the type of inventories can affect firms' incentives to use trade credit. We find evidence that trade credit extended is influenced by the extent to which firms hold different types of inventories. Moreover, we show that the strength of the relationship varies across economic sectors. Finally, we find that as buyers process goods, the sellers' incentives to extend trade credit diminish.


Mateut, S., Mizen, P., & Ziane, Y. (2015). Inventory composition and trade credit. International Review of Financial Analysis, 42, 434-446. doi:10.1016/j.irfa.2015.09.008

Journal Article Type Article
Acceptance Date Sep 11, 2015
Online Publication Date Sep 25, 2015
Publication Date Dec 22, 2015
Deposit Date Jul 4, 2018
Print ISSN 1057-5219
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 42
Pages 434-446
Public URL
Publisher URL