This paper examines the relationship between net trade credit and firms' investment levels, focusing on financially distressed firms. First, it introduces a theoretical model to predict the role played by net trade credit as a coordination device differentiating firms by their degree of...

This paper looks at innovation by EU firms and how this relates to financing constraints. Using the EIB Investment Survey, this working paper categorises EU firms according to their involvement in R&D and other innovation activities. It explores why young innovators are not more engaged in...