This research investigates the relationship between government economic policy uncertainty (EPU) and trade credit and its value implication for U.S. public firms. We find that firms curtail their receivables periods and face shorter payables periods from suppliers during high EPU. The impact of...

Trade credit extended to suppliers in the video game industry does not serve as a commitment device for large customers in determining which vendors to make relationship-specific investments in. Suppliers of video games are better off investing in relationships with trade creditors than seeking...

Using a sample of firms matched with their suppliers, we study the use of trade credit as firms approach a default event. We show that, in the extensive margin, around one third of suppliers exit the relationship well ahead of default, but the rest continue the relationship. Relationships are...

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...

Suppliers are exposed to the default risk of customers when selling goods on credit. Some of this risk can be mitigated if suppliers attain the right to initiate insolvency under bankruptcy laws. However, suppliers’ incentives to safeguard their customer base can deter them from initiating...

Using a unique dataset of Korean firms, we demonstrate that the effects of public listing on trade credit demand are heterogeneous between chaebol and non-chaebol firms. While we find a significant negative relationship between public listing and trade credit demand for non-chaebol firms, we do...

Using a supplier–client matched sample, we study the effect of the 2007–2008 financial crisis on between-firm liquidity provision. Consistent with a causal effect of a negative shock to bank credit, we find that firms with high precrisis liquidity levels increased the trade credit extended...

(VF)Cette contribution traite du crédit interentreprises et des délais de paiement particulièrement longs pratiqués par les entreprises françaises.Sur la base d’un échantillon de firmes industrielles et commerciales de la région Lorraine, observées de 1998 à 2006, nous produisons des...