| Abstract | Studies have suggested that the cyclical adjustment of inventory investment tend to be the important reason for macroeconomic fluctuations, and a comprehensive understanding of enterprise inventory management behavior plays an important role on explaining the economic cycle and pressing economic fluctuations. Based on the database of more than 19000 industrial enterprises continue to survive from 1999 to 2000, this article analyzed the relationship between the enterprise trade credit use and inventory management, as well as new characteristics of crisis, and analyzed different performance of firms facing different degree of banking financing constraints through the division of enterprise property rights, trying to attain a more comprehensive understanding of the enterprise inventory management behavior and the causes of economic fluctuations. The results show that:（1）The proportion of enterprise inventory investment is constrained by bank loans and the availability of accounts payable, and this restrictions is more obvious for private enterprises and small and medium-sized enterprises(SMEs).(2) Enterprises’ trade credit supply has obvious function of inventory management, and compared with large enterprises, SMEs with poor inventory management ability are more willing to reduce inventory through the provision of trade credit.（3）After the international financial crisis, the comprehensive influence of enterprise trade credit contraction and outside uncertainty lead to a sharp decrease in enterprise inventory. Therefore, we should not only consider loose monetary policy or fiscal policy during crisis rescue, but should take corresponding policy, taking different targeted policies for enterprises with different scale, gradually establishing and improving the enterprise credit system, to reduce the crisis impact on trade credit supply, and to relieve the enterprise inventory fluctuations. |