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 marke...

this paper investigates an epq model with the increasing demand and demand dependent production rate involving the trade credit financing policy, which is seldom reported in the literatures. the model considers the manufacturer was offered by the supplier a delayed payment time. it is assumed that the demand is a linear increasing function of the time and the production rate is proportional to ...

While the underlying causal linkage between trade credit and corporate growth has mainly been explored, primary factors that channel relationship are limited. This article hypothesises a nonlinear due to existing theoretical arguments on benefit cost of using suppliers' by corporations enhance growth. Based panel 23,023 non-financial companies from United Kingdom over 10-year period, evidence t...

Firms depend heavily on trade credit. In the years 1980-2004 about 60% of all inputs to production were purchased with a delayed payment. This paper provides evidence that trade credit connection plays signi cant role in the growth stability of customers by reducing the propagation of rm-level shocks from suppliers onto their customers. On average, customer experiences about 20% lower disruptio...