Does firm-level carbon assurance matter for trade credit?

We are among the first to examine the influence of carbon assurance on trade credit. Drawing on a sample of publicly listed U.S. firms, we document that firms with high carbon assurance obtain more trade credit from their suppliers. Our channel analysis tests show that high carbon assurance translates into higher trade credit by reducing risk and information asymmetry. Our results are robust with alternative model specifications, trade credit and carbon assurance measures, 2SLS IV analysis, PSM estimates, and Heckman-two stage approach to address possible endogeneity.