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Do trade creditors possess private information on public equities?

Below we summarise key findings from an academic paper that analyses the relationship between trade credit issued and a public company’s future financial performance. The research postulates that trade creditors possess information unknown to market participants about the financial health of their debtors.

LITERATURE

In this Literature Review, we discuss the June 2020 paper,

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Jose Elias Terriquez Analyst (London)