Corporate financialization matters trade credit financing: Evidence from China’s non-financial listed companies
Year: 2024
Type: article
Abstract: This study empirically examines the influence of corporate financialization on trade credit financing, focusing on non-financial companies listed in China's A-share market from 2010 to 2022. The results indicate that as corporate financialization increases, companies will obtain less trade credit financing. Further incorporating moderating factors like market position and financing constraints, we find that a higher market position effectively mitigates the negative impact of corporate financialization on trade credit financing, whereas higher financing constraints exacerbate the adverse effects of corporate financialization on trade credit financing. Additional analysis shows that corporate financialization negatively affects trade credit financing by crowding out main business performance and increasing operational risks. Moreover, corporate financialization more strongly inhibits trade credit financing in state-owned companies.
Source: Economic Analysis Letters
DOI: 10.58567/eal03030004
Authors: Xiaohua Huang, Benhuan Nie, Zhehao Huang
Institution: Guangzhou University
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4404146165