Alternative data and trade credit financing: Evidence from third-party online sales disclosure

Abstract

This study examines the relationship between the introduction of alternative data and trade credit financing. Using the event of the public launch of firm online sales data in a well-known financial database in China, we show that firms obtain more trade credit from suppliers with the public disclosure of such alternative data. We extend the literature by shedding light on the important role of alternative data in capital markets to assess the operational transparency and credit risk of firms.