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Trade credit, collateral liquidation, and borrowing constraints [PDF]

open access: yesJournal of Financial Economics, 2010
Assuming that firms’ suppliers are better able to extract value from the liquidation of assets in default and have an information advantage over other creditors, the paper derives six predictions on the use of trade credit. (1) Financially unconstrained firms (with unused bank credit lines) take trade credit to exploit the supplier's liquidation ...
Daniela Fabbri
exaly   +6 more sources

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