Work

Can supply chain finance enhance corporate solvency? — The impact mechanism of corporate litigation

Year: 2025

Type: article

Abstract: This research analyzes supply chain finance (SCF) and company solvency among Chinese listed firms over the years 2009–2022, it also examines litigation as an important moderator of the relationship. The empirical tests shows that SCF increases firms' ability to service debt. The role of corporate litigation is an important moderator of the relationship between SCF and company solvency. However, litigation effects differ between state-owned enterprises (SOEs) and private enterprises (PEs). However, there are not significant differences between SOEs and PEs for the effects of SCF on company solvency. In addition, the effects of SCF on corporate solvency provide evidence of heterogeneity between profitable and loss making firms.

Source: International Review of Economics & Finance

DOI: 10.1016/j.iref.2025.104477

Authors: Hongjun Han, Shu Song, Grace (Li) Tian

Institutions: Northwest University of Politics and Law, Sichuan International Studies University, Harvard University

Language: English

Topic: Working Capital and Financial Performance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: gold

Estimated APC paid: $1,930