Fatih Altunok

I am currently a PhD candidate in the Department of Economics at North Carolina State University.


My research interests are focused on areas of financial economics, corporate finance, small business economics, and macroeconomics.


I am particularly interested in exploring access to financial services, small business finance, monetary policy, and the banking sector and financial regulation.


Email Fatih Altunok


Last Updated: 4/25/2012

Abstract: I investigate determinants of trade credit contract terms using a three-stage sample selection model. I use a pooled data set from the 1993, 1998 and 2003 National Surveys of Small Business Finance (NSSBF). This paper challenges the assumption that trade credit terms do not vary across buyer firms within an industry or over time. I find evidence that suppliers' willingness to price discriminate, market structure, and stages of business cycles, in addition to customers' creditworthiness all play an important role in the determination of contract terms. Suppliers impose higher discount sizes, longer discount periods and maturities during recessions. Concentrated markets increase the availability of trade credit and competitive markets provide better terms. Using a measure of trade credit benefits to users, I find that larger, older, more creditworthy firms benefit the most from trade credit.


Keywords: Trade Credit, Contract Terms, Small Business Finance

JEL classifications: G32