Trade Credit Borrowing Amidst the COVID-19 Pandemic: Evidence from Turkish Publicly Traded Firms

Authors : Bahadır Karakoç

Pages : 110-133

Doi:10.33203/mfy.1476916

View : 33 | Download : 53

Publication Date : 2024-10-01

Article Type : Research Paper

Abstract :This study focuses on the effects of the COVID-19 pandemic on trade credit borrowing among publicly traded Turkish firms. Changes in the amount and duration of trade credit utilized by firms during the pandemic are investigated using panel data analysis, including Difference Generalized Method of Moments (GMM) and Fixed Effects Ordinary Least Squares (FE-OLS) methods. The findings reveal a significant increase in both the amount and duration of trade credit obtained from suppliers amidst the pandemic\'s economic disruptions. This trend is particularly pronounced among high-debt and low-cash firms, suggesting a heightened reliance on trade credit as a financing mechanism.
Keywords : Kovid 19 pandemisi, kriz, kredili mal alışı