Please use this identifier to cite or link to this item:
|Title:||Trade credit terms: Asymmetric information and price discrimination evidence from three continents|
Two-part terms (prompt payment discount)
|Citation:||Pike, R., Cheng, N.S., Cravens, K., Lamminmaki, D. (2005). Trade credit terms: Asymmetric information and price discrimination evidence from three continents. Journal of Business Finance and Accounting 32 (5-6) : 1197-1236. ScholarBank@NUS Repository. https://doi.org/10.1111/j.0306-686X.2005.00627.x|
|Abstract:||Trade credit terms offer firms contractual solutions to informational asymmetries between buyers arid 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. © Blackwcll Publishing Ltd. 2005.|
|Source Title:||Journal of Business Finance and Accounting|
|Appears in Collections:||Staff Publications|
Show full item record
Files in This Item:
There are no files associated with this item.
checked on Feb 14, 2019
WEB OF SCIENCETM
checked on Jan 29, 2019
checked on Feb 2, 2019
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.