Extending the existing redistribution theory to Chinese manufacturing firms, we find that the provision of trade credit through investing in accounts receivable is significantly correlated with the amount of funds raised through providers' equity finance, suggesting that firms not only...

We propose a multidimensional liquidity measure constructed from 6 out of 17 individual low-frequency liquidity proxies. The multidimensional liquidity factor yields significant positive premiums and offers distinguished explanatory power on the cross-sectional return variations in China’s...