Commercial Credit Financing and Stock Price Crash Risk---From the Perspective of Debt Governance Effect
Juan Wang

Abstract
Using a sample of A--share listed firms in China for the period 2003--2014,our paper investigates the relationship between trade credit and stock price crash risk. The study finds, trade credit can decrease stock price crash risk significantly in the following year. Our result suggests the trade credit suppliers perform a beneficial role in the corporate governance of China’s listed firms. In the robustness test, with taking into account the endogenous problems and the influence of the time window of the stock price crash， the conclusions are consistent with the above. This paper extends the study of the risk factors of stock price crash, and deepens the understanding of commercial credit financing.

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