How Do Risk Preferences Impact the Choice of Trade Credit?

Main Article Content

Oguzhan Batmaz, Veysel Avsar

Abstract

Investigating the impact of patience and risk-taking on trade credit using detailed payments data in imports from Turkey and comprehensive cross-country data on economic preferences from the Global Preference Survey (GPS), our research findings indicate a correlation between a country's risk-taking preferences and the proportion of imports conducted using the open account method. This suggests that countries with a greater propensity for risk-taking tend to engage in more open account transactions for imports. Notably, this paper appears to be the first to explore the behavioral dimension of trade finance in this manner.

Article Details

How to Cite
Oguzhan Batmaz, Veysel Avsar. (2024). How Do Risk Preferences Impact the Choice of Trade Credit?. European Economic Letters (EEL), 14(1), 157–160. https://doi.org/10.52783/eel.v14i1.1010
Section
Articles