Trade credit links predict stock returns across borders, impacting global markets.
The essays in this thesis explore how different markets are connected and how this affects stock returns and commodity futures volatility. The researchers found that firms with high trade credit in one country have predictable stock returns based on the performance of their customer countries. They also discovered that commodity futures volatility is influenced by factors like emerging market demand and macroeconomic uncertainty. Additionally, they found that consumer and producer shocks impact commodity spot and term premia differently.