Can Commercial Credit Exist Transmission Between Upstream And Downstream In Enterprises?

Enterprise is a very important part of the market economy system whose benign and stable development is very important. Nowadays financing constraint problem is one of the major problems currently faced by enterprises. However, the commercial credit can be very good to ease this problem. Therefore the research on the present commercial credit financing of enterprise has the profound significance.According to the flow direction of the commercial credit, it is divided into commercial credit's gain and provision. The former studies usually focus on the commercial credit's gain or provision, former studies ignoring the important role between the connection of upstream and downstream enterprises. In fact, the managing motivation, the financing motivation and the characteristics of Industry Value Chain decide that commercial credit is one of the carries of the value stream.In view of those facts, this paper analyzes whether the transferring effects of trade credit exist between upstream and downstream of firms, which is based on two dimensions of gaining and providing commercial credit. And then we select enterprise's scale and the monetary policy as explained variable from the point of view on micros and the market macros level to analyze different size and different monetary policy on the size of the commercial credit transfer. The conclusion of this paper shows that the commercial credit gain of enterprise has a positive impact on commercial credit provision, which exists the transmission effects of commercial credit. Commercial credit transmission is related with the size of enterprise which means the more scale, the lower transmission. Commercial credit transmission is related with the monetary policy. When the monetary policy is tightening, the transmission effect is becoming low.