| Trade credit generated from credit sales behavior, a short-term fund from upstream to downstream enterprises. Trade credit is based on real trade of goods and services with the characteristics of spontaneity and flexibility. Past researched are concerned about trade credit transaction attributes, and since the 1960 s it gradually be seen as an important short-term financing instruments, and began to focus on the relationship between trade credit and monetary policy. Many researches show that there is a substitution between trade credit and bank loans, and trade credit means an alternative way of financing to ease the financial strain of enterprises. If this substitution effect exists, trade credit will offset the effect of tightening monetary policy on a certain extent. These studies help us understand the relationship between the interaction of macroeconomic policies and micro-enterprise behavior.In this paper, both theoretical analysis and empirical research method are used. Based on the theoretical analysis, we use China’s A-share listed companies’ financial data from 2006 to 2013 to construct multiple regression model to study monetary policy, property rights and substitute financing effects of trade credit. It shows that there is a significant relationship between trade credit and loans, and the substitution effect is related to monetary policy. When monetary policy tightens, companies use more trade credit, and effect of substitute financing is stronger. In addition, non-state-owned companies’ substitute financing is affected by monetary policy significantly, and the state-owned companies’ effect is not significant, which mainly due to credit discrimination on nature of property rights of enterprises. Therefore there are differences in the ability of obtaining loans. Finally we put forward advices on improving monetary policy, developing "supply chain finance" innovative products, strengthening trade credit monitoring and gradually get rid of credit discrimination. |
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