ANALYSIS OF THE INFLUENCE OF BARGAINING POWER ON TRADE CREDIT FINANCING: EXPERIENCE DATA FROM CHINA A SHARE LISTED MANUFACTURING COMPANIES
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Abstract
Through studying and analyzing the data of manufacturing-listed companies in Chinese A-shares from 2007 to 2016, this paper findsthat the bargaining power has significantlypositive correlation with the company’s trade credit, which means: the greater bargaining power, the more trade credit shall be gained. The bargaining power in the monetary deflationperiod has greater influenceon the company’s trade credit than monetary easing period. The bargaining power has greater influenceto the nonstate company’s trade credit than state-owned company’s, which is more prominent in the deflationperiod.
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