Wu, Wenfeng; Rui, Oliver M.; Wu, Chongfeng - In: Journal of Banking & Finance 36 (2012) 11, pp. 2868-2883
This paper investigates the effect of financial deepening on the relationship between trade credit and cash holdings among Chinese listed firms. We first document an asymmetric effect of trade payables and receivables on cash holdings, in that firms hold an additional $0.71 of cash for every $1...