This dissertation examines the effect of the legal environment on access to several types of external finance, and on the decision to invest, for the 3 countries that make up the East African Community (EAC). The results suggest that well defined creditor rights are positively correlated with access to bank loans. Strong creditor rights places pressure on firms to keep good quality financial records. More lending takes place in this environment. A good quality legal system also improves access to non-bank finance, namely trade credit and leasing finance. The analysis demonstrates that collateral in the form of machinery and equipment improves access to bank finance. Collateral appears to be of greater importance when legal enforcement costs are relatively low and information asymmetry is more acute. The results also show that the property rights environment is important for investment. However, the protection of property rights has a more meaningful effect on investment in an environment where the costs of corruption are lower and courts are more efficient. Access to bank finance has a significant positive effect on investment. Thus, a legal system that improves the flow of funds from banks to firms promotes growth enhancing activities. Internal sources of finance are also found to be important for investment. It is recommended that strong emphasis is placed on improving the laws protecting the rights of creditors over property pledged as collateral and over information they can obtain from debtors. Debtor rights over assets in their possession should also be strengthened.

Bakgrund och problem: Majoriteten av försäljningen mellan företag, samt mellan företag och offentlig sektor sker via handelskrediter. Detta leder till att företagen ofta blir utsatta för risker i form av sena och uteblivna betalningar. I sådana situationer finns det behov av riskreduceringsmekanismer som ska reducera och minimera dessa risker. Mekanismerna för reducering av risker har vi fördelat i två kategorier, privata och offentliga. Avsikten med uppsatsen är att undersöka vilka av dessa mekanismer som har störst inverkan på beviljandet av handelskrediter. Den här studien är den första av sitt slag som genomförts i Sverige. Syfte: Uppsatsens syfte är att undersöka, analysera och utvärdera vilka av de privata eller offentliga riskreduceringsmekanismerna som har störst inverkan på beviljandet av handelskrediter. Metod: Den kunskapsteoretiska uppfattningen som har legat till grund för vår undersökning är positivism. Den positivistiska ansatsen har lett till att en hypotetisk-deduktiv ansats med en kvantitativ metod valdes för att få fram resultat och analys. Teoretiska ramverk: Vår studie utgår från ett eklektiskt teoretiskt angreppssätt och tidigare forskning inom området. Vi använder teori som disposition och som en beskrivande del av vår studie. Våra teorier om de privata och offentliga riskreduceringsmekanismerna kommer även att presenteras i detta kapitel. Empirism: Det empiriska materialet är baserat på en enkätundersökning där enkäten skickades som webbenkät och delades ut för hand till olika företag. Materialet har sedan analyserats med hjälp av statistiska tes Resultat: Majoriteten av respondenterna svarade att de offentliga riskreduceringsmekanismerna inte påverkar deras beviljande av handelskrediter i Sverige medan de privata riskreduceringsmekanismerna till en viss grad har påverkan på beviljandet av handelskrediter. Det råder relativt låg risk i den svenska ekonomin vilket kan förklara riskreduceringsmekanismernas relativt låga inverkan på beviljandet av handelskrediter. / Background and problem: Today, the biggest sales between businesses and between businesses and the public sector are through trade credit. As a result, companies are often exposed to risk in the form of late and missing payments. In such situations, there is a need for mechanisms of risk reduction to reduce and minimize these risks. The mechanisms of risk reduction are divided into private and public risk reduction. The point with this dissertation is to show which of these mechanisms that have the greatest impact on the decision making of trade credit. This study is the first in Sweden to implement this type of investigation. Purpose: The point with this paper is to investigate, analyze and evaluate which of the private or public mechanisms of risk reduction those have the greatest impact on decision making on trade credit. Method: The epistemological view which has been the basis for our study is positivism. The positivistic approach has led to a hypothetical-deductive approach with a quantitative method, chosen to obtain the results and analysis. Theoretical perspective: Our study is based on an eclectic theoretical approach and previous research in the area. We use theory to outline the descriptive part of our study. Our theory about the private and public mechanisms of risk reduction will also be included in this chapter. Empirical: The empirical material is based on a survey where a web-questionnaire was distributed to various companies. The material was then analyzed by statistical tests. Results: The majority of respondents replied that the public mechanisms of risk reduction did not affect their decision making on trade credit while the private mechanisms of risk reduction to some degree did affect the decision making on trade credit. There is a relatively low risk in the Swedish economy, which can explain why the mechanisms of risk reduction had relatively low impact on decision making on credit trade.

Globalization and increased product variety have impacted the uncertainty in demand and supply. The recent financial instability adds another layer of uncertainty regarding financing and investment. The changes, while gradual, have accumulated over time and posed enormous difficulties in planning procurement. This thesis focuses on inventory procurement strategies that help firms tackle challenges due to uncertainties in the demand/supply and financial concerns. The first part is on employing dynamic inventory procurement strategies to achieve cost efficiency and tackle the uncertainties in demand and supply. The second and third parts focus on the interaction between Finance and Operations in both its analytic aspects and empirical aspects. A synopsis of the three parts of the thesis follows. Part 1: “Inventory Management and Stochastic Lead Time” This chapter analyzes a continuous time back-ordered inventory system with stochastic demand and stochastic delivery lags for placed orders. This problem in general has an infinite dimensional state space and is hence intractable. We first obtain the set of minimal conditions for reducing such a system’s state space to one-dimension and show how this reduction is done. Next, by modeling demand as a diffusion process, we reformulate the inventory control problem as an impulse control problem. We simplify the impulse control problem to a Quasi-Variation Inequality (QVI). Based on the QVI formulation, we obtain the optimality of the (s, S) policy and the limiting distribution of the inventory level. We also obtain the long run average cost of such an inventory system. Finally, we provide a method to solve the QVI formulation. Using a set of computational experiments, we show that significant losses are incurred in approximating a stochastic lead time system with a fixed lead time system, thereby highlighting the need for such stochastic lead time models. We also provide insights into the dependence of this value loss on various problem parameters. Part 2: “Inventory Financing and Trade Credit” In this chapter, we study the inventory performance of publicly listed retailers between 1980 and 2010 based on a panel dataset from COMPUSTAT, CRSP, I/B/E/S and a hand-collected dataset on bankruptcy. We quantify the effect of a carefully-defined financial holding cost on inventory decisions, after controlling for operational factors and considering access to trade credit. This finding provides empirical evidence of the failure of the Modigliani-Miller Theorem in the inventory management context. We are also able to infer several unobservable costs based on historical inventory decisions. For example, the average cost of trade credit is estimated to be about 20% per year, which matches the typical trade credit terms in the United States. We find that the cost of trade credit computed has a strong connection to inventory per- formance. Our findings are robust to alternative econometric specifications, alternative measures of variables and model estimates for subsets of data. Part 3: “Joint Inventory and Cash Management Decisions” In this chapter, we address this question by considering a general con- tinuous time model of a dynamic inventory system that incurs costs in both managing the inventory and managing the cash flow. To support its inventory and operational cost, this system has access to both the financial market and trade credit from suppliers. We show how the inventory procurement decision and financing decision are made jointly. Specifically, we show that, with friction of financing, not only does the Modigliani-Miller Theorem not hold but also the two decisions interact in a dynamic and complex manner. We are also able to show how the value of the inventory system can be improved by using trade credit. / text

This dissertation investigates two major themes: (1) the strategies that global firms use to overcome weak institutions in their outsourcing and (2) how local institutions affected how firms reconfigured their global supply chains in response to the financial crisis. All three papers use a unique dataset of international contract manufacturing orders that provides hitherto unavailable insight into the global supply chains of many of the world's largest brands in footwear, sportswear, and apparel. In the first essay I create a formal model that examines the use of relational contracting by firms to overcome weak contracting institutions in their supply chains. The model predicts that, when the risk of future demand shocks is high, buyers make long-term commitments to source from suppliers in weak institution countries. I test this model and find that buyers preserved their relationships with suppliers in weak contract enforcement countries during the financial crisis for reasons that cannot be explained by cost. In conjunction with the model, these results suggest that relying on relational contracting to overcome weak contracting institutions can reduce a buyer’s flexibility in configuring his supplier networks. In the second essay, I examine whether firms choose to source from multinational (MNC) suppliers instead of local suppliers as a means of overcoming weak contract enforcement institutions or as a means of accessing supply chain management capabilities. I find strong evidence that buyers are more likely to source from MNC suppliers in countries where contract enforcement is weak and when they have less experience sourcing from a given country. Buyers are also more likely to source from MNC suppliers when they source a wider variety of products, have smaller supplier networks, and have smaller order volumes. My third essay investigates how trade credit terms are affected by local credit markets, financial institutions, and market power. I find that trade credit terms are longer when local credit markets are more developed and when buyers have market power. I also test how trade credit terms responded to the financial crisis and find that terms lengthened subject to the depth of local credit markets and buyer market power.

Durant les dernières décennies, le financement relationnel a fortement évolué. Il n’est plus considéré maintenant comme un simple mécanisme de réduction de l’asymétrie d’information. Cependant, de nombreuses questions restent non résolues. Quels sont ses déterminants ? Son utilisation impacte-t-elle de la même façon tous les agents ? Quels sont les substituts possibles ? La thèse s’organise autour de ces axes. Le premier chapitre traite de l’impact de la compétition bancaire sur la mise en place du financement relationnel. Le second chapitre s’intéresse à l’utilisation de ce financement par les minorités. Enfin, le troisième chapitre analyse la substitution potentielle entre crédit fournisseur et financement relationnel. En utilisant deux bases de données, l’une sur des PME américaines, l’autre des italiennes, nous montrons empiriquement que : 1. La concurrence interbancaire influence de manière non-linéaire le financement relationnel. Les banques favorisent un financement relationnel quand la compétition est faible, transactionnel quand elle s’intensifie avec un retour au relationnel en cas de forte compétition. Ce résultat est cohérent avec la vision du relationnel bancaire comme mécanisme de protection contre la compétition, tant qu’elle n’est pas trop intense. 2. Si l’utilisation du financement relationnel augmente dans un premier temps la discrimination subie par les minorités ethniques, celle-ci diminue avec le temps. Cela démontre la validité de la théorie psychologique du contact en finance. 3. Les entreprises opaques n’ayant pas accès au financement relationnel utilisent plus de crédit fournisseur. Celui-ci peut être vu comme un financement relationnel / Over the past decades, the definition of relationship banking has greatly evolved. It is no longer considered as a simple mechanism used to reduce information asymmetry. However, many questions remain. What are its determinants? Does its use impact all agents in the same way? What are its potential substitutes? This thesis is organized around these themes. The first chapter examines the impact of banking competition on relationship lending technology. The second chapter studies the use of relationship lending technology by minorities. Finally, the third chapter analyzes the potential substitution between relationship lending technology and trade credit. Using two different databases - the first one composed of US SMEs, the second of Italian SMEs - we empirically show that: 1. Banking competition impacts non-linearly the use of relationship lending technology. Banks favor relationship lending when competition is weak, transactional lending when it increases then return to relationship lending in case of strong competition. 2. If the use of relationship lending technology tends to first increase discrimination against minorities, this discrimination decreases with time. This result could be analyzed as an empirical validation of the psychological theory of contacts in finance. 3. Opaque firms without an access to relationship lending technology use more trade credit. Trade credit can be seen as a relationship lending technology

京都大学 / 0048 / 新制・課程博士 / 博士(経済学) / 甲第21522号 / 経博第590号 / 新制||経||288(附属図書館) / 京都大学大学院経済学研究科経済学専攻 / (主査)教授 矢野 剛, 教授 塩地 洋, 教授 田中 彰, 教授 三重野 文晴 / 学位規則第4条第1項該当 / Doctor of Economics / Kyoto University / DGAM

No / Trade credit terms offer firms contractual solutions to informational asymmetries between buyers and sellers. The credit period permits buyers to reduce uncertainty concerning product quality prior to payment, while the seller can reduce uncertainty concerning buyer payment intentions by prescribing payment before/on delivery or through two¿part payment terms and other mechanisms. Variation in trade credit terms also offers firms price discriminating opportunities. This study, drawing on the responses of 700 large firms in the US, UK and Australia, explores trade credit terms through the twin objectives of reducing information asymmetries and discriminatory pricing. Support is found for both theories.

The thesis is aimed at explanation of the factors that led to the creation of the current financial crisis in their mutual context. Emphasis is placed on the way of providing mortgages in the USA, policy of FED and credit derivatives. The impacts of the crisis on banking, stock and commodity markets, building industry and automotive industry are discussed as important determinants of international trade. It is shortly mentioned how countries like Germany, China or Czech Republic dealt with the crisis. The final part of the thesis is devoted to the impacts of the crisis on international trade, these impacts result from the issues that are described in the first two parts. Discussed are the commodity and territorial structures of the international trade during the years of crisis. Also the impacts on the foreign trade of the Czech Republic are stressed.

[pt] Há evidência - Petersen e Rajan (1997) - que fornecedores têm uma vantagem informacional sobre o risco de seus clientes. Entretanto, Elliehausen e Wolken (1993) reportam que taxas de crédito comercial são freqüentemente padronizadas. Por que os fornecedores não usam sua vantagem informacional para adequar taxas de juros a risco? Este trabalho demonstra que se a demanda por insumos for suficientemente inelástica, a competição com os bancos faz com que a taxa de crédito comercial seja invariante e cole na taxa bancária. Se, ao contrário, a demanda for suficientemente elástica, a taxa invariante de crédito comercial é zero, como usualmente acontece nos E.U.A. em créditos de fornecedor até 10 dias. / [en] There is evidence - Petersen and Rajan (1997) - that suppliers have superior information on their clients capacity of repayment. However, Elliehausen and Wolken (1993) report that trade credit rates are frequently standardized. Why do not suppliers use their informational advantage to make the interest rate reflect the risk? This work shows that, if the demand for imputs is sufficiently inelastic, competition among banks leads the trade credit rate to be invariant and very close to banking rate. On the contrary, if the demand is sufficiently elastic, the trade credit rate is invariant and equal to zero, as usually occurs with suppliers credit with maturity until 10 days in USA.

Submitted by Silvana Teresinha Dornelles Studzinski (sstudzinski) on 2015-05-25T11:56:33Z No. of bitstreams: 1 ElianedeMello.pdf: 968346 bytes, checksum: 901b6d698e62be9089fe8a8c748bd27e (MD5) / Made available in DSpace on 2015-05-25T11:56:33Z (GMT). No. of bitstreams: 1 ElianedeMello.pdf: 968346 bytes, checksum: 901b6d698e62be9089fe8a8c748bd27e (MD5) Previous issue date: 2011-08-24 / Nenhuma / O financiamento por meio dos fornecedores é um assunto que tem sido pouco estudado em nível nacional. No entanto, na literatura internacional, várias hipóteses têm sido propostas para explicar as diferentes razões que levam a esse fenômeno, chamado crédito comercial, que não parece ser baseado em uma teoria geral. As organizações justificam o fornecimento de crédito comercial pressupondo que, na ausência de tais financiamentos, os clientes que não têm acesso ao crédito das instituições financeiras não possam adquirir seus produtos. A importância do crédito é elevada, e as empresas que atuam como intermediários financeiros desempenham um papel fundamental como substitutos do banco, concedendo crédito comercial para as companhias com restrições ao crédito bancário. Diante desses fatos, o objetivo do presente estudo é examinar se o crédito comercial facilita o acesso ao crédito bancário ou é seu substituto. Utilizando dados em painel de 322 empresas brasileiras de capital aberto, no período de 2000-2009, os resultados confirmam a hipótese da substituição. Ainda, quando testada apenas nas companhias com o patrimônio líquido positivo, a hipótese da substituição é aceita somente nas empresas mais jovens e com maior proporção de ativos. Os resultados empíricos admitem também que, apesar de as companhias mais velhas terem supostamente maior capacidade de endividamento, elas estão preferindo financiar-se via recursos gerados internamente. Observou-se, ainda, que a idade é altamente significante nas empresas menores. / Financing by suppliers is a subject that has been scarcely studied at the national level. However, in the international literature, several hypotheses have been proposed to explain the different reasons that have led to this phenomenon, called trade credit, which does not seem to be based on a general theory. Organizations have justified the offer of trade credit assuming that, in case of absence of such financing, customers that do not have access to credit from financial institutions could not buy their products. Credit is something very important, and companies that function as financial intermediates play a fundamental role as bank surrogates by offering trade credit to companies that have restrictions in terms of bank credit. Considering all this, the present study aims at examining whether the trade credit facilities the access to bank credit and or it is its surrogate. Considering data from a panel of 322 Brazilian public companies in the period from 2000 to 2009, the results have confirmed the hypothesis of surrogacy. In addition, when tested only in companies with positive net equity, the hypothesis of surrogacy is accepted for younger companies with more assets. The empirical results have also made it possible to admit that, despite older companies having greater debt capacity, they prefer finance themselves through internally generated resources. Besides that, age is highly significant in smaller companies.