environment that promotes trade credit flows among firms as a second-best alternative to bank financing. …

transactions between firms and by theories that focus on the advantages of liquidity provision along the supply chain. We use the … more constrained relative to their investment needs, do not provide additional liquidity to their suppliers, and increase … acquisition activities once the liquidity crunch dissipates. These firms’ accounts payable increase proportional to their raw …

severe financial constraints. Moreover, companies going bankrupt had significantly higher levels of external debt and bank …

The interplay between liquidity and credit risks in the interbank market is analyzed. Banks are hit by idiosyncratic … random liquidity shocks. The market may also be hit by a bad news at a future date, implying the insolvency of some … possible contingency, banks currently long of liquidity ask a liquidity premium for lending beyond a short maturity, as a …