Created at 10pm, Apr 26
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Sustainable Development of the Real Economy: Supply Chain Finance and Enterprise Financialization
Contract ID
1XWrGLfL1CiqQu9PTRXwxTI_JVxYDkKVutOPSYkqE3w
File Type
PDF
Entry Count
105
Embed. Model
jina_embeddings_v2_base_en
Index Type
hnsw

AbstractSupply chain finance, as an important financial instrument supporting the sustainable development of the real economy, has attracted significant attention. In this paper, research is conducted on 3181 non-financial listed enterprises in the A-share market in China from 2012 to 2021. Multiple regression analysis is adopted to examine the relationship between supply chain finance and enterprise financialization, as well as the impact of the former on the latter and the underlying mechanisms at play. The research findings indicate that the supply chain finance model, led by core enterprises, tends to exacerbate enterprise financialization in China. The significant resource dependence of small- and medium-sized enterprises (SMEs) on core enterprises acts as a moderating variable for supply chain finance and enterprise financialization. This dependence amplifies the stimulus of supply chain finance on the “financialization” of enterprises, demonstrates a pronounced moderating effect within state-owned enterprises, and strengthens over time when the core enterprises possess information advantages. The findings articulated herein contribute to the scholarly discourse, offering insights into the improvement of supply chain finance and the advancement of the real economy’s sustainable development via financial services. A good supply chain finance model should align with the requirements for the development of China’s real economy. It should provide not only financial assistance to enterprises but also foster a virtuous cycle within the industrial chain and encourage industrial production over financial investment.

While enterprises rely on external resources, they need to be aware of the pressures brought about by dependency. According to Porters five forces model, when core enterprises have numerous suppliers and customers, they possess strong bargaining power in the supply chain and enjoy resource and information advantages in supply chain finance. The strength of relationships between upstream and downstream enterprises in the supply chain can influence the functioning of supply chain finance. A lower supply chain concentration of core enterprises indicates that a core enterprise has a larger number of suppliers and customers, which means it has stronger bargaining power. Therefore, when the supply chain concentration of core enterprises is lower, SMEs in the upstream and downstream have a higher degree of resource dependence on the core enterprises. Utilizing the methodology proposed by Patatoukas (2012) , the supply chain concentration may be quantified by calculating half of the
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The lower the supply chain concentration of core enterprises, the stronger the resource dependence of SMEs on core enterprises. For ease of understanding, the reciprocal of the supply chain concentration of core enterprises is used as a proxy variable to measure the resource dependence of SMEs.
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(2) Information advantages of core enterprises
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The extent to which a company discloses information to the public can to some extent reflect the degree of information symmetry in the supply chain. The stronger the information advantages possessed by core enterprises in the supply chain, the higher the willingness of the core enterprises to disclose information and the higher the supply chain transparency. A higher transparency level indicates a lower degree of information asymmetry in the supply chain. In this case, banks are also inclined to favor core enterprises in promoting the implementation of supply chain finance, forming a principalagent model dominated by the core enterprises. Drawing on the approach of Xiaoyun G. (2022) , supply chain transparency (Tran_cy) can be measured by the number of the top five suppliers and the top five customers explicitly disclosed by listed companies. This transparency measure (Tran_cy) serves as a proxy variable for resource dependence. It only counts the number of companies whose na
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