Our study investigated the interaction of credit from suppliers (trade payables) and credit given to customers (trade receivables) in order to better understand how the reliance on credit from suppliers and credit given to customers interact with each other to affect firms’ performance. Using...

Trade credit is reciprocal in that firms grant credit to customers and also accept credit from suppliers, but the relationship between the joint and net effects of trade receivables and trade payables on performance are scant in the existing literature. Panel data regression analysis is used in...