Boissay, Frédéric; Gropp, Reint - 2021
used to relax financial constraints. We show that firms that face idiosyncratic liquidity shocks are more likely to default … on trade credit, especially when the shocks are unexpected, firms have little liquidity, are likely to be credit … liquidity shocks they face on to their suppliers down the trade credit chain. The evidence is consistent with the idea that …