Fasano, Francesco; La Rocca, Maurizio; Sánchez-Vidal, … - In: International Journal of Financial Studies : open … 12 (2024) 1, pp. 1-16
of judicial enforcement. Given that trade credit can be a substitute for bank financing, we find that firms make more use … enforcement, which reinforces the role of contracts in the market, amplifies this effect. Finally, we observe that the COVID-19 … crisis has reduced both the positive effect of local financial development and the positive moderating effect of enforcement …