We bring to light a benefit of trade credit relationships in which large investment-grade firms borrow from their smaller suppliers despite the ability to secure less expensive financing elsewhere. The use of trade credit allows a firm, which is wary of a supply disruption, to indirectly acquire...

The Current Expected Credit Loss (CECL) standard took effect in 2020 during the onset of the unprecedented global pandemic. Proponents of CECL argue that the regulation can provide timelier provisions, while others are concerned about the potential for heightened reported earnings volatility. In...

This paper examines banks' accounting choices between fair-value and historical-cost accounting when reported accounting information is used for capital requirement regulation. In choosing fair-value relative to historical-cost, banks must consider potential benefits of additional lending in...