Trade credit, creditor protection and banking crisis

© 2023 Elsevier Inc. This document is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/ This document is the published version of a published Work that appeared in final form in Global Finance Journal. To access the final edited and published work see https://doi.org/10.1016/j.gfj.2023.100834This paper analyzes the effect of banking crises on the trade credit provided to customers and whether this effect depends on the strength of a country's legal protection of creditors. The results indicate that trade credit extensions increase in times of crisis, although this increase is smaller in countries where creditors are well protected; however, no differences are observed in trade credit extensions between countries with weak and strong creditor protection in non-crisis periods