Trade Credit Distribution Of Chinese Listed Corporations And The Empirical Study On Its Influence Factors

The former studies usually aimed at the acquired Trade Credit and ignored the important role communicating the upper and lower reaches of Industry Value Chain (IVC) played by trade credit. In fact, the managing motivation, the financing motivation and the characteristics of IVC decide that trade credit is one of the carriers of the value stream. This paper utilizes acquired trade credit ratio (TC) and providing trade credit ratio (TC~*) to structure two ratio-Y and Z: Y=TC+TC~*, Z=TC~*-TC. Y is to measure trade credit capacities of the IVC, so called capacities ratio. And Z is to judge power of the IVC, so called power ratio.According to Y and Z, we divide trade credit chain into 6 parts. Data based on 1,268 listed corporations falling in 20 industries show: 1) the majority of the listed corporations on IVC have a close relationship with each other; 2) industries with higher maturity or with intensive competition and in the middle position of IVC adopt the cooperation model commonly. 3) industries with monopoly nature, such as energy mining, petrified product manufacturing and refinement, metal manufacture, transportation and so on, and industries in terminal branches of IVC obtain the powerful status and acquire more trade credit more easily than to provide it to the related companies.Moreover, the trade credit situation is not only different because of the industrial value chain, but also influenced by character of the single link- quality of the company individual in IVC. The panel data withdrew from the annual finance report of the sample companies in 1998 to 2005 shows: 1) the property debt condition, the scale, the liquidity, the profitability and the cash management ability influence the acquired trade credit greatly in degree; 2) above individual innate natures of the company have the same effect on the providing trade credit; 3) that the profitability acts as the most powerful element decide the corporation's status in IVC. The corporations with achievements quality catch trade credit from IVC more easily, and at the same time less pay outside. The direct consequence is to take more values resources in IVC causing itself to be of the superiority status in the competition.