We study how U.S. dollar fluctuations transmit through domestic supply chains in emerging markets. Large firms borrow in foreign currency and extend trade credit to domestic partners, exposing the supply chain to exchange rate risk. We develop a model where financially constrained suppliers pass...

The adoption of environmentally sound supply chain management strategies is gaining prominence in response to increasing sustainability efforts in emerging economies. As global environmental degradation escalates, industries are compelled to replace conventional products with green and reliable...

Background: Price is the most authoritative constituent among the factors shaping consumer demand. Growing consciousness among global communities regarding environmental issues makes greenness one of the key factors controlling demand, along with time, which drives demand in markets. This paper...

This article aims to investigate the trade credit policies in construction firms across Central-Eastern Europe (CEE) and Western Europe (WE). Utilizing financial data from construction companies in 12 European Union (EU) countries (2000-2020), sourced from the BACH-ESD database, panel data...

Given its widespread use, clarifying the influence of strategic fit between firms and customers on firms' credit decisions is important. Unlike most studies focusing on individual firm characteristics, we examine the impact of strategic fit on firms' trade credit decisions. Using a sample of...

This article tests whether excluding late and long payments from deductible expenses shortens days payable outstanding (DPO). We exploit a natural experiment of increasing the income tax base resulting from liabilities overdue for more than 30 days and those with payments longer than 90 days in...

This study examines the influence of environmental, social, and governance (ESG) performance on corporate trade credit financing based on Chinese A-share listed companies' data from 2018 to 2022. The empirical results revealed that enterprises with better ESG performance receive more trade...

This paper uses data from commercial banks and nonfinancial listed firms in Vietnam from 2007 to 2022 to address the effect of banking uncertainty on firms' trade credit. We find that trade credit increases with heightened uncertainty in the banking sector, which is more conspicuous in...