Pike, Richard; Cheng, Nam Sang; Cravens, Karen; … - In: Journal of Business Finance & Accounting 32 (2005-06) 5-6, pp. 1197-1236
Trade credit terms offer firms contractual solutions to informational asymmetries between buyers and sellers. The credit period permits buyers to reduce uncertainty concerning product quality prior to payment, while the seller can reduce uncertainty concerning buyer payment intentions by...