Trade credit, bank lending and monetary policy transmission

Mateut, Simona; Bougheas, Spiros; Mizen, Paul

doi:10.1016/j.euroecorev.2005.01.002

Cited by 161 publications

(111 citation statements)

References 36 publications

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“…Alternatively, we used base rate used by Bank Negara Malaysia as proxy for monetary policy regime as in Mateut et al (2006). The results using base money to nominal GDP ratio show that there are significant differences in the speed of adjustment and payout of the banks in the two monetary regimes.…”

Section: Optimal Dividend Payout and Adjustment Speedmentioning

confidence: 99%

Product market competition, regulation and dividend payout policy of Malaysian banks

Ameer

2008

Journal of Financial Regulation and Compliance

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Purpose -This paper investigates the impact of the product market competition, regulations on the dividend policies of the listed banks, over the period of 1995-2005 in Malaysia. Methodology -Ordered Probit modelling technique and target adjustment model. Findings-We find significant differences in the payout of the banks categorized as selling a non-interest based banking products and mix of both interest and non-interest based banking products. We find that the decision to increase dividends is significantly related to earnings, and the decision to cut dividend is significantly related to the changes in the non-performing loans, corporate and real estate sectors loans ratio and earnings loses. Research implications -Research findings have implication for the regulators of the banks. Originality/value -The research provides a clear link between banks' portfolio choice and earnings that have implications for the dividends in the emerging markets.

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Section: Optimal Dividend Payout and Adjustment Speedmentioning

confidence: 99%

Product market competition, regulation and dividend payout policy of Malaysian banks

Ameer

2008

Journal of Financial Regulation and Compliance

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“…Hale and Santos (2008) find that firms with more liquidity take longer to enter the public bond market due to the fact that they have substantial internal funds, which confirms the findings of Guariglia et al (2011) for firms in China. Liquidity is also used by Mateut et al (2006) to determine whether firms resort to bank finance. Dennis and Mihov (2003) argue that bond financing should be more viable for firms with high profits.…”

Section: Influences On the Bond Market Participation Decisionmentioning

confidence: 99%

What promotes greater use of the corporate bond market? A study of the issuance behaviour of firms in Asia

Mizen

Tsoukas

2013

Oxford Economic Papers

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This paper investigates bond market development in Asia by exploring the determinants of firms' decisions to issue public debt in a range of Asian economies. Using a novel database covering the period 1995 to 2007, we use comparable micro level panel of nine countries-China, Hong Kong SAR, Indonesia, Korea, Malaysia, Philippines, Singapore, Taiwan, and Thailand-to explore factors that promote bond issuance by firms. We control for firm characteristics and market features such as bond market depth and liquidity; we also consider supra-national policy initiatives to improve bond market function. Our paper demonstrates that regional initiatives have been an important step towards greater bond issuance by firms in Asia, mostly by fostering market deepening and improving liquidity.JEL classifications: E22, F32, G32.

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“…The literature provides explanations for uptake or offer of trade credit based on informational asymmetries (Smith, 1987, and Biais and Gollier, 1997), discrimination arguments (Brennan, Maksimovic and Zechner, 1988), monitoring advantages (Jain, 2000 andMateut, Bougheas and, insurance (Cunat, 2007), product quality (Lee and Stove, 1993 and Long, Malitz and Ravid, 1994) bankruptcy (Frank andMaksimovic, 2004 andWilner, 2000) opportunistic behavior (Burkart and Ellingsen, 2004) and externalities (Daripa and Nilsen, 2005). Empirical studies explore the relationships between accounts payable and accounts receivable and other balance sheet variables to corroborate or refute these theories and examine in detail the terms and conditions of trade credit.…”

Section: Introductionmentioning

confidence: 99%

Corporate trade credit and inventories: New evidence of a trade-off from accounts payable and receivable

Bougheas

Mateut

Mizen

2009

Journal of Banking & Finance

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202

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Trade credit is an important source of finance for firms and has been well researched, but the focus has been on financial tradeoffs. In this paper we consider the tradeoffs with inventories and develop a simple model that recognises the incentives a firm faces to offer and receive trade credit. Our model identifies the response of accounts payable and accounts receivable to changes in the cost of inventories, profitability, risk and liquidity, and importantly, this influence operates through a production channel. Our results support the model and complement many existing studies focused on explaining the financial terms of trade credit.JEL classification: G31, G32

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Trade credit, bank lending and monetary policy transmission

Cited by 161 publications

References 36 publications

Product market competition, regulation and dividend payout policy of Malaysian banks

Product market competition, regulation and dividend payout policy of Malaysian banks

What promotes greater use of the corporate bond market? A study of the issuance behaviour of firms in Asia

Corporate trade credit and inventories: New evidence of a trade-off from accounts payable and receivable

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