Authors: Dimitrios Anthimos, Athanasios Tsagkanos, Eleftherios Aggelopoulos

Title: Funding through bank loan versus trade credit

Abstract

The aim of this paper is to analyze the correlation of trade credit (accounts receivable and accounts payable) with the bank loan during the decade 2008 – 2017 for the listed companies in Athens Stock Exchange and for the Greek companies (listed or unlisted in Athens Stock Exchange). Having examine the hypotheses which concern the substitution effect and complementary effect between trade credit and bank loan, also examining, if the size, the synthesis of share capital and the production of a firm affect the ways of funding. For the listed companies in Athens Stock Exchange, the trade credit and the bank loan have a substitution effect. The same effect presents also the big Greek companies, private companies and non-manufacturing companies. For the Greek companies, the trade credit and the bank loan have substitution and complementary effect. Also, the big Greek companies, private companies and nonmanufacturing companies have substitution and complementary effect between trade credit and the bank loan.