Who bears the liquidity burden? Industry concentration and trade credit imbalance in supply chains

Purpose This study examines how firms redistribute liquidity across supply chain partners through trade credit policies. Moving beyond aggregate working capital measures, it conceptualizes trade credit imbalance as a directional mechanism through which firms extract or extend financing within buyer–supplier–customer relationships. The study investigates how industry concentration is associated with this redistribution. Design/methodology/approach Using panel data from Standard & Poor's 500 Composite Stock Price Index firms over the period 2016–2023, the study employs regression analysis to test for a nonlinear relationship between industry concentration and trade credit imbalance. It further examines the moderating role of board characteristics, namely chief executive officer (CEO) duality and board women concentration. Findings The results reveal a U-shaped relationship between industry concentration and trade credit imbalance, indicating that firms in moderately concentrated industries exhibit relatively lower imbalance compared to those in highly competitive or highly concentrated settings. Board women presence attenuates this relationship, while CEO duality shows no significant moderating effect. Practical implications The findings suggest that managers should consider industry structure when designing trade credit policies and recognize the role of board composition in influencing financially and relationally balanced decisions within supply chains. Originality/value This study introduces trade credit imbalance as a directional measure of working capital management and provides evidence of its nonlinear association with industry structure. It contributes by linking industry concentration and board composition to firms' trade credit decisions.