Author(s): Aamir Inam Bhutta, Muhammad Fayyaz Sheikh, Iqra Saif, Aroosa Munir and Arooj Naz
This study investigates the relationship between managerial professional connections and trade credit using a sample of 244 Pakistani firms for the period 2009 to 2017. We find robust evidence of a positive impact of professional connections on firm’s access to trade credit using alternative proxies of trade credit. Further, the professional connections are more effective for the firms with lower market power. Overall, these findings suggest that managerial professional connections help firms access the trade credit, particularly if their CEOs have served or are serving on the top position of the registered trade associations.