Show me the receipts: B2B payment timeliness and expected returns

• 成果类型: Article
• 署名作者: Lieberman, Paul; Mihov, Atanas; Naranjo, Andy; Velikov, Mihail
• 署名单位: University of Kansas; State University System of Florida; University of Florida; Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2025.104108
• 发表日期: 2025
• 关键词: B2B payments; Trade credit; Payment behavior; stock returns

摘要

Trade credit is an important source of firm financing, yet its rich informational content pertaining to payment timeliness is under-explored in asset pricing. Using an extensive data set from a leading private information exchange on business payment performance, we study the effects of trade credit payment timeliness on stock returns. We document two distinct channels through which trade credit payment behavior impacts future stock returns - slow diffusion of information and risk stemming from a customer firm's vertical bargaining power position in the supply chain. Consistent with our first channel, a sudden delay in a firm's payment to its suppliers predicts significantly lower future returns for its stock. Consistent with our second channel, firms that pay their bills moderately late on a consistent basis relative to terms earn significantly higher stock returns.