Work

Computing resources and trade credit financing: Evidence from China

Year: 2024

Type: article

Abstract: In the context of global digital transformation, computing resources have become a critical production factor, profoundly impacting corporate operational efficiency, innovation capability, and supply chain management , particularly in the area of trade credit financing. This paper delves into how computing resources influence corporate trade credit supply, with a particular focus on their application within supply chains. The research indicates that computing resources significantly enhance the capacity of enterprises to provide trade credit, fostering trust and collaboration among supply chain partners. Mechanism analysis reveals that computing resources, through technological effects, accelerate information processing and transmission, reducing information asymmetry within the supply chain, thereby increasing transparency, trust, and the motivation to supply trade credit. Through capital effect, computing resources strengthen a company's ability to access external funding, alleviate financing constraints, and optimize financing costs, thereby enhancing trade credit supply capacity. This impact is more pronounced in state-owned enterprises, mature companies, and those operating in superior business environments. This study highlights the vital role of computing resources as an emerging key factor in trade credit supply, particularly in enhancing cooperation and trust among supply chain partners, enriching our understanding of corporate operational mechanisms in the digital economy era. By deeply analyzing the effects of computing resources on the efficiency and reliability of trade credit supply, this paper not only provides theoretical support for companies in optimizing financing management during digital transformation but also offers valuable insights for policymakers in promoting digital upgrades and building a more stable and transparent supply chain finance system.

Source: International Review of Economics & Finance

DOI: 10.1016/j.iref.2024.103780

Authors: Shuqi Li, Yuxuan Zhu, Nuo Xu

Institutions: Jiangsu University, Zhejiang University of Finance and Economics Dongfang College, Zhejiang University of Finance and Economics

Language: English

Topic: Working Capital and Financial Performance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Industry, innovation and infrastructure

Open Access status: hybrid

Estimated APC paid: $2,790