Trust,Transaction Cost and Mode of Trade Credit--Empirical Evidence from Chinese Listed Companies
As an informal institution,trust has an important effect on transaction actions,which is often reflected in some form of contracts. Based on the samples of Chinese listed companies,this study found that trust could significantly influence the mode of trade credit. Without trust,higher expenses of per sale and higher cost of trade credit mode such as prepaid accounts would be used. Compared with the state-owned enterprises,private and other non-state-owned enterprises are not trusted and. bear higher transaction cost. By controlling the level of economic development and other factors,the higher degree of trust can significantly increase the companys value and performance. We find that trust can reduce transaction cost and change mode of commercial credit. Furthermore,private-owned firms face more transaction costs than SOE. The paper verified the importance of trust for company and provided theoretical and empirical evidence about the strategic decision to establish the framework and operational for credit system in China.
Trust Transaction cost Mode of credit
刘凤委 李琳 薛云奎
上海市七宝镇浦汇新村23号-401
国际会议
成都
英文
2007-07-09（万方平台首次上网日期，不代表论文的发表时间）