The impact of supply chain finance on firm capital structure adjustment: Evidence from China

• Published in: Australian journal of management Vol. 48; no. 2; pp. 436 - 462
• Main Authors: Pan, Ailing, Xu, Lei, Li, Bin, Ling, Runze, Zheng, Luyan
• Format: Journal Article
• Language: English
• Published: London, England SAGE Publications 01.05.2023; Sage Publications Ltd
• Subjects: Business logistics; Economic development; Government business enterprises; Shenzhen zheng quan jiao yi suo; Stock exchanges; Turnover (Business); CHINA; competitive advantage; cash holdings; core firm; Capital structure; supply chain finance

We establish a link between supply chain finance (SCF) and capital structure adjustment by core firms through a data set of listed firms on the Shanghai and Shenzhen Stock Exchanges. We find that SCF can significantly speed up capital structure adjustment, especially for the underleveraged firms. En...