This paper studied the governance mechanism of the economic transaction with trade credit: First, we build a theoretical model that bargaining power reduces trade credit ex ante, and expand ex post enforcement power. The ex post enforcement power and cash in the buyer's hand expand the trade...

This paper will document financial aspects of transactions, and trade credit supply behavior with FDI among small and medium-sized enterprises(SMEs) based on two original surveys, conducted in four cities in China in 2003. The survey was designed to capture the nature of inter-firm transactions,...