Year: 2026
Type: article
Abstract: This study examines the relationship between ESG disclosure intensity and trade credit using firm-level data from 72 countries over the period 2009–2023. The empirical evidence reveals a U-shaped relationship between ESG disclosure intensity and trade credit. ESG disclosure intensity initially has a negative association with trade credit, but as disclosure intensity increases, its effect becomes more positive for both trade credit received from suppliers and trade credit granted to customers. These findings remain robust across alternative specifications and institutional settings. Among the ESG pillars, environmental and governance disclosures exhibit more pronounced and consistent effects than social disclosures. Overall, this study extends the literature on the nonlinear relationship between ESG disclosure intensity and trade credit and provides a more comprehensive understanding of the implications of ESG disclosure for firms’ trade credit management.
Authors: Van Nguyen Hong Tran, Khiem Dac Anh Le
Institution: University of Da Nang
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: diamond
Funder: Đại học Đà Nẵng
OpenAlex ID: W7225573142