Trade credit plays an important role in facilitating trades in supply chains. Using large datasets that link U.S. suppliers with their major customers, we show trade credit to be a collaborative and competitive tool from the view of financing collaboration, relationship lending, and horizontal...

This paper empirically examines how sectoral comovements are correlated with trade credit usage in a multi-region setting. Extending the models in Shea (2002) and Raddatz (2010), we develop a framework that captures the impact of trade credit usage on comovement between sectors within an economy...

Problem definition: Trade credit studies pay little attention to firms' late payment behavior due to the lack of extensive panel data. From the perspective of industry structure, this paper is the first to empirically study firms' trade credit late payment.Academic/Practical Relevance: While the...