THE SUBSTITUTION FINANCING EFFECT OF SUPPLIERS’ TRADE CREDIT ON CUSTOMERS’ TRADE CREDIT IN CHINA

This study investigates the substitution financing effect of suppliers’ trade credit on customers’ trade-credit using Chinese listed firms from 2009 to 2018. Results verify credit, indicating that with higher have lower credit. Moreover, substitutes by alleviating constraints. Customer concentration weakens relation. Finally, bank is more pronounced than As exogenous policy shock, capital market liberalization has no significant impact relation between heterogeneous credits. reveals rather homogeneous. The also exists in inside, which expands existing literature’s understanding and theory’s connotation.