Common ownership along supply chain and trade credit: Evidence from China

Yanhui Xu

Finance Research Letters, 2023, vol. 56, issue C

Abstract: This paper explores the impact of common ownership along supply chain on trade credit based on customer-supplier relationships of Chinese listed firms. The results show that common ownership along supply chain can increase the trade credit. This effect is achieved through two channels: alleviating information asymmetry between customers and suppliers and participating in firm decision making. The effect of common ownership along supply chain on improving trade credit is more significant for non-state owned firms in China. This study provides a reference for equity linkages and financial governance in the supply chain.

Keywords: Supply chain; Common ownership; Trade credit; Information asymmetry (search for similar items in EconPapers)
JEL-codes: D22 D81 G34 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:56:y:2023:i:c:s154461232300483x

DOI: 10.1016/j.frl.2023.104111

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