Suppliers as financial intermediaries: Trade credit for undervalued firms
نویسندگان
چکیده
We examine the impact of undervaluation on a firm's use trade credit. To address potential endogeneity bias, we construct our instrumental variable based mutual fund outflow-driven price pressure, and measure allows us to distinguish misvaluation from fair valuation. find that suppliers play an important role in providing temporary bridge financing when firm is undervalued. The effect varies with information environment its dependence external finance. In addition, manually matched supplier-customer sample, show small customers long-term relationships their are more likely obtain credit facing stock market undervaluation, while smaller customer pool extend undervalued customers.
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ژورنال
عنوان ژورنال: Journal of Banking and Finance
سال: 2021
ISSN: ['1872-6372', '0378-4266']
DOI: https://doi.org/10.1016/j.jbankfin.2021.106043