Firm's social network can bring about competition advantage, while trade credit may reflect the competitiveness of firm's business operations, but it is a pity that there is a lack of studies on the social network and business credit. This paper investigate the influence of different degrees of...

We present evidence that restrictions to the set of feasible financial contracts affect buyer - supplier relationships and the organizational form of the firm. We exploit a regulation that restricted the maturity of the trade credit contracts that a large retailer could sign with some of its...

Trade credit is a widely adopted industry practice. Prior research has focused on how trade credit benefits firms by improving vertical supply chain relationships. This paper offers a novel perspective by examining whether trade credit benefits suppliers through a horizontal channel. Under the...

COVID-19 threatens global supply chains, as reflected by trade credit volumes. We use Sweden, and its choice to not lock-down, as part of our identification strategy. When firms are allocated into groups based on their distance to end-consumers, we find that the flow of trade credit in Sweden...

Trade credit arises from delayed payments between firms. It is not easy to identify its determinants since they are connected to organisational,technical, commercial and financial factors.In this paper we empirically examine the determinants of the usage of trade credit by Italian industrial...

We study the relationship between net trade credit and firms' investment levels, focusing on financially distressed firms. First, we introduce a theoretical model to predict the role played by net trade credit as a coordination device differentiating firms by their degree of financial distress....

We study a seller's trade credit provision decision in a situation of repeated contracting with incomplete information over the buyer's payment propensity when the enforceability of formal contracts is uncertain. The payment terms of a transaction are selected in an inter-temporal trade-off...

Trade credit is one of the most important sources of short-term finance in buyer-seller transactions.This paper studies a seller's trade credit provision decision in a situation of repeated contracting withincomplete information over the buyer's ability and willingness of payment compliance when...

This paper analyzes the determinants of trade credit demand and supply in the Tanzanian rice market, using data from individual trade transactions between rice wholesalers and rice retailers. We use a structural modelling approach to disentangle the supply and demand effects that may drive the...

Using a novel dataset of supplier-customer relationships, I develop measures of vertical position of public and private firms in the US economy in order to test trade credit theories. Firms at higher vertical positions have higher profit margins and hold more net trade credit even after...