Bank Lending and Trade Credit: Evidence from Chinese Firms

The determinants and roles of bank lending, which is formal financing channel and outsides the supply chain, and trade credit, which is informal financing channel and insides the supply chain, are analyzed here through listed firms in China over 2006-2009. In our model we consider the trade credit as a complementary role and more important for small firms. Also with the firms different industry classified, we give the performance of bank lending and trade credit respectively. The estimation results and analysis are given detailed in our paper.