The literature on working capital management (WCM) provides mixed evidence on the effect of working capital on firm profitability and performance. We use firms from developed and emerging economies to explore how working capital and its components relate to firms' performance while controlling...

This paper examines how a borrower's growth affects trade credit decisions. An analysis of publicly traded firm data from nine developed economies indicates that trade credit increases with growth. In some cases, this increase is driven by conditions related to liquidity. Exploring the...

The authors study the effect of financial crises on trade credit in a sample of 890 firms in six emerging economies. They find that although provision of trade credit increases right after the crisis, it consequently collapses in the following months and years. The authors observe that firms...

We demonstrate that the "predator-prey" metaphor may be well-suited to describe trade finance mechanisms in emerging economies. Having analyzed the dynamics of trade credit in the Polish corporate sector over the period between 1997 and 2014, we found that suppliers of trade credit were smaller,...