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Alternative data and trade credit financing: Evidence from third-party online sales disclosure

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  • Liu, Shangqun
  • Wang, Jiamin
  • Li, Qian

Abstract

This study examines the relationship between the introduction of alternative data and trade credit financing. Using the event of the public launch of firm online sales data in a well-known financial database in China, we show that firms obtain more trade credit from suppliers with the public disclosure of such alternative data. We extend the literature by shedding light on the important role of alternative data in capital markets to assess the operational transparency and credit risk of firms.

Suggested Citation

  • Liu, Shangqun & Wang, Jiamin & Li, Qian, 2023. "Alternative data and trade credit financing: Evidence from third-party online sales disclosure," Finance Research Letters, Elsevier, vol. 58(PB).
    • Handle: RePEc:eee:finlet:v:58:y:2023:i:pb:s1544612323008413
    DOI: 10.1016/j.frl.2023.104469
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    References listed on IDEAS

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    Cited by:

    1. Zhou, Zhenkun & Wu, Danni & Su, Zhi & Ren, Tao, 2024. "Exploring the investment value of retail sales growth: Evidence from the China Retailer Alliance," Finance Research Letters, Elsevier, vol. 63(C).

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