Corporate value and trade-credit policies: evidence from China

This study evaluates the nexus of enterprise value and trade-credit strategies. Fixed-effects modeling is used for baseline outcomes, a difference-in-difference approach applied as quasi-natural experiment. The estimates are robust to alternative measures distant covariates. findings validate that has positive (negative) impact on (supplies), (demand). said effect more pronounced in SOEs, revealing critical role capital mobilization. additional analyses show financially constrained equity reliant firms likely exploit firm management. micro aspect this suggests can allow managers shape non-price competitive strategies it also offers incentives maintain financial slack. On macro level, mobilization enhancing purchasing power overall economy.