Peer Influence on Trade Credit

Daniel Gyimah, Michael Machokoto, Anywhere (Siko) Sikochi

Research output: Working paper

Abstract

We examine the influence of peer firms on trade credit policies of listed firms in the United States. We posit and find evidence that firms mimic their peers in formulating trade credit policies. The findings are more pronounced for firms that operate in highly competitive product markets and an uncertain information environment. Our results also show that firms not only mimic peers in similar circumstances, but that they also imitate their more and less successful peer firms. Our results are robust to different methods of selecting peers, sampling, different proxies, and estimation techniques.
Original languageEnglish
Number of pages46
Publication statusPublished - 8 Oct 2019

Fingerprint

Trade credit
Peer influence
Peers
Credit policy
Product market
Information environment
Sampling

Keywords

  • trade credit
  • peer effects
  • product market competition

Cite this

Gyimah, D., Machokoto, M., & Sikochi, A. S. (2019). Peer Influence on Trade Credit.

Peer Influence on Trade Credit. / Gyimah, Daniel; Machokoto, Michael; Sikochi, Anywhere (Siko).

2019.

Research output: Working paper

Gyimah, D, Machokoto, M & Sikochi, AS 2019 'Peer Influence on Trade Credit'.
Gyimah D, Machokoto M, Sikochi AS. Peer Influence on Trade Credit. 2019 Oct 8.
Gyimah, Daniel ; Machokoto, Michael ; Sikochi, Anywhere (Siko). / Peer Influence on Trade Credit. 2019.
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