TY - JOUR
T1 - National culture and small firms' use of trade credit
T2 - Evidence from Europe
AU - Moro, Andrea
AU - Belghitar, Yacine
AU - Mateus, Cesario
N1 - Publisher Copyright:
© 2021 Elsevier Inc.
PY - 2021/8
Y1 - 2021/8
N2 - We examine the use of trade credit in Western Europe by relying on a sample of 182,296 small firms for the period 2003–2013. Building on information asymmetry theory, we explore how a country's culture can impact SMEs use of trade credit. We discover that countries' cultural norms play a key role in explaining trade credit differences in Europe. We find that in countries with high power distance, high individualism, high masculinity, and high uncertainty avoidance rely more on trade credit.
AB - We examine the use of trade credit in Western Europe by relying on a sample of 182,296 small firms for the period 2003–2013. Building on information asymmetry theory, we explore how a country's culture can impact SMEs use of trade credit. We discover that countries' cultural norms play a key role in explaining trade credit differences in Europe. We find that in countries with high power distance, high individualism, high masculinity, and high uncertainty avoidance rely more on trade credit.
KW - Bank credit
KW - Culture
KW - Financial flexibility
KW - SMEs
KW - Trade credit
UR - http://www.scopus.com/inward/record.url?scp=85110533522&partnerID=8YFLogxK
U2 - 10.1016/j.gfj.2021.100655
DO - 10.1016/j.gfj.2021.100655
M3 - Journal article
AN - SCOPUS:85110533522
SN - 1044-0283
VL - 49
JO - Global Finance Journal
JF - Global Finance Journal
M1 - 100655
ER -