This study investigates the substitution financing effect of suppliers' trade credit on customers' trade-credit using Chinese listed firms from 2009 to 2018. Results verify the substitution financing effect of suppliers' trade credit on customers' trade credit, indicating that firms with higher...

The literature on the relationship between bank credit and trade credit is mixed between the substitution and complementarity effects. The extant studies only investigate the linear relationship between the two factors, thus missing some important implications from any non-linear relationship...

This study investigates the nexus of stock liquidity and trade-credit policies in China from 2002 to 2017. The estimates are robust to alternative proxies, various fixed-effects, and the exogenous impact of Chinese split share structure reforms (SSSR) 2005-06 is investigated through the...