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M. J. Brennan, V. Maksimovic and J. Zechner, “Vendor Financing,” Journal of Finance, Vol. 43, No. 5, 1988, pp. 1127-1141.

has been cited by the following article:

• TITLE: The Determinants of Trade Credit: Evidence from Indian Manufacturing Firms

  AUTHORS: Rajendra R. Vaidya

  KEYWORDS: Trade Credit, Inventories

  JOURNAL NAME: Modern Economy, Vol.2 No.5, November 25, 2011

  ABSTRACT: Trade credit (accounts receivable and accounts payable) is both an important source and use of funds for manufacturing firms in India. This paper empirically investigates the determinants of trade credit in the Indian context. The empirical evidence presented suggests that strong evidence exists in support of an inventory management motive for the existence of trade credit. Highly profitable firms both give and receive less trade credit. Firms with greater access to bank credit offer less trade credit to their customers. On the other hand, firms with higher bank loans receive more trade credit. Holdings of liquid assets have a positive influence on both accounts receivable and accounts payable.