In this study, we investigate whether trade credit is associated with internal control effectiveness. Using a sample of U.S. publicly listed firms over the period 2006-2018, we find robust evidence that internal control effectiveness firms have a lower level of trade credit. Our additional...

Purpose - This study examines the influence of the readability of annual reports on firms' ability to obtain trade credit from suppliers. Particularly, we conjecture that annual report readability helps firms obtain more trade credit from suppliers.Design/methodology/approach - We use the...

Prior studies show that higher corporate social responsibility (CSR) performance lowers firms' cost of debt and equity financing. Using a sample of 16,463 U.S. firm-year observations that represent more than 2,455 individual firms over the 1996-2016 period, we investigate the relation between...

This study examines the association between government contracts and firms' use of trade credit. Firms with government contracts may demand less trade credit because of their lower operational risk, higher firm performance, stronger capacity to generate internal funds, and better access to other...

By using a pilot license as a proxy for the sensation-seeking personality trait, we examine the relation between sensation-seeking CEOs and trade credit. With a sample of pilot CEOs and non-pilot CEOs from U.S. listed firms from 1993-2016, we find strong evidence that firms led by pilot CEOs are...

This paper is the first to study the relation between financial restatements and restatement firms’ demand for trade credit as a source of financing. Using a sample of U.S.- listed firms for the 2000–2016 period, we find that restatement firms tend to use more trade credit in the year...