부산대학교 도서관

This paper examines the relationship between trade credit and shadow banking activities measured by inter-corporate entrusted loans. Using a panel data of Chinese listed firms, we find that entrusted loans have a significant substitution effect on the supply of trade credit and the substitutional effects are mitigated during financial crisis periods. Propensity score matched samples and a difference-in-difference approach provide robustness to our findings. Our evidence suggests that trade credit interrelates with shadow banking activities on corporate financing.