Annual report is essential for building trust and transparency between a company and its suppliers and customers. And easy-to-understand text in the report can help to develop long-term, mutually beneficial relationships. This study examines how annual report readability impacts the trade credit...

We examine the association between audit quality and the use of collateral in a sample of Chinese firms from 2005 to 2011. Using the full sample, we document a negative relationship between audit quality and the use of collateral that is consistent with lenders’ interests. We also show that...