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Do creditors value board ownership representativeness? Evidence from trade credit: A pre-registered report

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  • Jiang, Fuxiu
  • Ma, Jia

Abstract

This pre-registered study aims to explore the interaction between internal board structure arrangements and external stakeholder reactions. Specifically, we focus on how customers and suppliers respond to board ownership representativeness, which measures the alignment of interests between the board and the shareholders. We investigate the following questions in this study: (1) Does board ownership representativeness impact corporate trade credit? (2) If so, what is the mechanism underlying this effect? (3) What impact does the legal environment and information asymmetry have on this relationship? (4) How does board ownership representativeness interact with the role of independent directors? (5) How does the change in trade credit driven by board ownership representativeness ultimately influence a firm's performance? This study expands the research on the economic consequences of board structure from the perspective of board ownership representativeness and provides a new lens for enhancing firms' access to trade credit.

Suggested Citation

  • Jiang, Fuxiu & Ma, Jia, 2025. "Do creditors value board ownership representativeness? Evidence from trade credit: A pre-registered report," Pacific-Basin Finance Journal, Elsevier, vol. 93(C).
    • Handle: RePEc:eee:pacfin:v:93:y:2025:i:c:s0927538x25001775
    DOI: 10.1016/j.pacfin.2025.102840
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    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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