holding and its substitutes, trade credit and short-term bank finance, the study develops a panel vector autoregression that … signalling theory of trade credit and show that firms experiencing liquidity shocks resort to cash or trade credit but not to … bank finance. Increasing cash improves access to trade credit. Additional cash or trade credit triggers a slowdown of the …

often been interpreted as indicating that alternative informal financing channels such as trade credit can substitute for … trade credit in promoting firm performance and firm growth, and find that access to bank loans is more important than does … availability of trade credit. Our results imply that firms cannot get around financial repression through alternative financing …

economies. Suppliers and bankers represent alternative governance structures to a firm because of their trade credit and loan … effect regression of banking sector development and trade credit of firms listed on the JSE SRI and non-SRI listed firms was … done to ascertain whether trade credit gives firms a preferred governance system and structure. The findings affirm that …

I develop a simple contract-theoretic model of multi-stage economies to address the nexus between trade credit, bank … credit and balance-sheet contagion. First, I show that competitive markets in which heterogeneous price-taker firms compete … strategically by setting trade credit settlements have a unique symmetric equilibrium, which dictates the production flow along the …