This paper examines the role of political affiliation in the extension of trade credit by Chinese firms. Using a data-set of over 70,000 firms over the period 2000-2007, we find that, because they benefit from easier access to short-term external funding, politically affiliated firms can extend...

This paper examines the role of political affiliation in the extension of trade credit by Chinese firms. Using a dataset of more than 70,000 firms over the period 2000-2007, we find that, because they benefit from easier access to short-term external funding, politically affiliated firms can...