Menu Expand
  1. Journals
  2. Economics, Finance, Business & Management
  3. Journal of Contextual Economics – Schmollers Jahrbuch
  4. Vol. 116, Issue 3
  5. pp. 379–394

JOURNAL ARTICLE

Cite JOURNAL ARTICLE

Style
Breig, H., Wilson, P. Borrower Information and the Choice between Bank Debt and Trade Credit: The Case of France and Germany. Journal of Contextual Economics – Schmollers Jahrbuch, 116(3), 379-394. https://doi.org/10.3790/schm.116.3.379
Breig, Hildegard and Wilson, Patricia Furlong "Borrower Information and the Choice between Bank Debt and Trade Credit: The Case of France and Germany" Journal of Contextual Economics – Schmollers Jahrbuch 116.3, 1996, 379-394. https://doi.org/10.3790/schm.116.3.379
Breig, Hildegard/Wilson, Patricia Furlong (1996): Borrower Information and the Choice between Bank Debt and Trade Credit: The Case of France and Germany, in: Journal of Contextual Economics – Schmollers Jahrbuch, vol. 116, iss. 3, 379-394, [online] https://doi.org/10.3790/schm.116.3.379
Format
Download

Borrower Information and the Choice between Bank Debt and Trade Credit: The Case of France and Germany

Breig, Hildegard | Wilson, Patricia Furlong

Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 116 (1996), Iss. 3 : pp. 379–394

Read Now Download (PDF)

Additional Information

Article Details

Publisher Name
Duncker & Humblot
DOI
https://doi.org/10.3790/schm.116.3.379
Language
Multiple languages
Pages
16

Breig, Hildegard

Wilson, Patricia Furlong

References

  1. Allen, F. (1993), Stock Markets and Resource Allocation, in: C. Mayer and X. Vives (eds.), Capital Markets and Financial Intermediation, Cambridge: Cambridge University Press, 81-108. (1990), The Market for Information and the Origin of Financial Intermediation, Journal of Financial Intermediation 1, 3-30.  Google Scholar
  2. Banque de France (1989), La banque de donn&es d’entreprises FIBEN, Note d’information no. 85.  Google Scholar
  3. Begg, D. / Portes, R. (1993), Enterprise Debt and Economic Transformation: Financial Restructuring in Central and Eastern Europe, in: C. Mayer and X. Vives (eds.), Capital Markets and Financial Intermediation, Cambridge: Cambridge University Press, 230-255.  Google Scholar
  4. Berglöf, E. (1990), Capital Structure as a Mechanism of Control: A Comparison of Financial Systems, in: M. Aoki, B. Gustafson and O. E. Williamson (eds.), The Firm as a Nexus of Treaties, London: Sage Publications, 237-262.  Google Scholar
  5. Besanko, D. / Kanatas, G. (1993), Credit Market Equilibrium with Bank Monitoring and Moral Hazard, The Review of Financial Studies 6, 213-232.  Google Scholar
  6. Biais, B. / Gollier, Ch. / Viala, P. (1994), Why Do Firms Use Trade Credit? A Signalling Model. Paper presented at the Symposium on Financial Intermediation and Corporate Finance in Hilversum (NL), May 26-28.  Google Scholar
  7. Breig, H. (1994), Bank Lending and Corporate Finance in Major Industrial Countries: Are France and Germany Really Similar? Diskussionspapier 27/94, Institut für Finanzwissenschaft der Albert-Ludwigs-Universität Freiburg im Breisgau.  Google Scholar
  8. Brennan, M. J. / Maksimovic, V. / Zechner, J. (1988), Vendor Financing, Journal of Finance 43, 1127-1141.  Google Scholar
  9. Bruchner, H. / Stützle, R. (1986), Leitfaden zu Bankgeheimnis und Bankauskunft, Verlag Wertpapier-Mitteilungen, Frankfurt/Main.  Google Scholar
  10. Bundesgesetzblatt (1985), Teil I, herausgegeben vom Bundesministerium der Justiz, Bundesanzeiger Verlagsges.m.b.H., Bonn. (1992), Teil I, herausgegeben vom Bundesministerium der Justiz, Bundesanzeiger Verlagsges.m.b.H., Bonn.  Google Scholar
  11. Commission des Communautes Européennes (1994), B.A.C.H. La banque de données harmonisees sur les comptes d’entreprises, Bruxelles.  Google Scholar
  12. Diamond, D. W. (1991), Monitoring and Reputation: The Choice between Bank Loans and Directly Placed Debt, Journal of Political Economy 99, 689-721.  Google Scholar
  13. Dietsch, M. (1990), Le credit interentreprises: coüts et avantages, Economie et Statistique, Oct., 65-79.  Google Scholar
  14. Emery, G. W. (1987), An Optimal Financial Response to Variable Demand, Journal of Financial and Quantitative Analysis 22, 209-225.  Google Scholar
  15. Fischer, K. (1990), Hausbankbeziehungen als Instrument der Bindung zwischen Banken und Unternehmen: Eine theoretische und empirische Analyse, Dissertation Universität Bonn.  Google Scholar
  16. Frankel, A. B. / Montgomery, J. D. (1991), Financial Structure - An International Perspective, Brookings Papers on Economic Activity, No.1, 257-310.  Google Scholar
  17. Franks, J. / Mayer, C. (1990), Capital Markets and Corporate Control: A Study of France, Germany and the UK, Economic Policy 5, No.1, April, 191-231.  Google Scholar
  18. Greenbaum, S. 1. / Thakor, A. V. (1994), Contemporary Financial Intermediation, Orlando (Florida): Dryden Press.  Google Scholar
  19. Harm, Ch. (1992), The Financing of Small Firms in Germany, The World Bank, Policy Research Working Paper 899.  Google Scholar
  20. Hellwig, M. (1991), Banking, Financial Intermediation and Corporate Finance, in: A. Giovannini and C. Mayer (eds.), European Financial Integration, Cambridge: Cambridge University Press, 35-63.  Google Scholar
  21. KPMG Audit (1990), Banking and Finance in France, Paris.  Google Scholar
  22. KPMG Peat Marwick (1986) Banking in Germany, Frankfurt.  Google Scholar
  23. Lee, Y. W. / Stowe, J. D. (1993), Product Risk, Asymmetric Information, and Trade Credit, Journal of Financial and Quantitative Analysis 28, 285-300.  Google Scholar
  24. MacKie-Mason, J. K. (1990), Do Firms Care Who Provides Their Financing?, in: R. G. Hubbard (ed.), Asymmetric Information, Corporate Finance and Investment, Chicago: The University of Chicago Press, 63-103.  Google Scholar
  25. OECD (1992), Financial Accounts of OECD Countries, Financial Statistics Part 2, Paris.  Google Scholar
  26. Petersen, M. A. / Rajan, R. G. (1995), The Effect of Credit Market Competition on Lending Relationships, Quarterly Journal of Economics 110, 407-443.  Google Scholar
  27. Rajan, R. G. (1992), Insiders and Outsiders: The Choice between Informed and Arm’s-Length Debt, Journal of Finance 47, 1367-1400.  Google Scholar
  28. Seward, J. K. (1990), Corporate Financial Policy and the Theory of Financial Intermediation, Journal of Finance 45, 351-377.  Google Scholar
  29. Sharpe, S. A. (1990), Asymmetric Information, Bank Lending and Implicit Contracts: A Stylized Model of Customer Relationships, Journal of Finance 45, 1069-1087.  Google Scholar
  30. Smith, J. K. (1987), Trade Credit and Informational Asymmetry, Journal of Finance 42, 863-872.  Google Scholar
  31. Wilner, B. S. (1994), Trade Credit versus Bank Credit, Northwestern University Working Paper.  Google Scholar
  32. Wilson, P. F. (1994), Public Ownership, Delegated Project Selection and the Firm’s Source of Debt Financing, Indiana University Working Paper.  Google Scholar

Abstract

This paper develops a model to better understand the different levels of trade credit and bank debt in France and Germany. The greater use of trade credit in France relative to Germany may be caused by the French central bank providing borrower information to all banks through the data bank FIBEN. The banks act as brokers and ‘sell’ the information to trade creditors rather than use the information to make additional loans. The model predicts that numerous French firms benefit from using trade credit, whereas numerous German firms benefit from developing multiple bank relationships.

Table of Contents

Section Title Page Action Price
Hildegard Breig/Patricia Furlong Wilson: Borrower Information and the Choice between\rBank Debt and Trade Credit:\rThe Case of France and Germany 379
1. Introduction 379
2. The Institutional Environment for Borrower Information in France and Germany 382
2.1 France 382
2.2 Germany 383
3. The Model 384
3.1 Timing of Information and Actions 384
3.2 Second Period 385
3.3 First Period 389
4. Discussion 390
5. Empirical Relevance and Conclusion 391
References 392
Zusammenfassung 394
Abstract 394

Contact

Duncker & Humblot GmbH Carl-Heinrich-Becker-Weg 9 12165 Berlin, Deutschland T: +49 30 790006-0

Quick Navigation

2024 Duncker & Humblot GmbH

Powered by CloudPublish

We use cookies to ensure that you get the best experience on our website. Learn more about how we use cookies.