Law and borders: Entrepreneurs' immigration status and trade credit
研究中国控股股东海外居留权对企业获取商业信用的影响，发现海外居留权会降低企业获得商业信用的能力，但若海外司法管辖区与中国有引渡条约，这种负面影响会减弱。
We examine whether the immigration status of entrepreneurs is a concern for creditors when extending trade credit. Utilizing the disclosure of overseas residence rights of controlling shareholders in China, we show that overseas residence rights negatively affect firms' ability to obtain trade credit. This negative association is attenuated if the overseas jurisdiction has an extradition treaty with China. Our results are robust to the introduction of the Hong Kong national security law as a source of exogenous variation in the boundary of domestic law. The decrease in trade credit provision is more pronounced in firms that are perceived as less trustworthy (i.e., with less social trust or higher expropriation risk). Our results offer new insights into how the reach of law across borders can affect firms' financing activities.