Ng, Chee K.; Smith, Janet Kiholm; Smith, Richard L. - In: Journal of Finance 54 (1999) 3, pp. 1109-1129
Trade credit is created whenever a supplier offers terms that allow the buyer to delay payment. In this paper we document the rich variation in interfirm credit terms and credit policies across industries. We examine empirically the firm's basic credit policy choices: whether to extend credit or...