Agricultural Supply Chain Financing Strategies under the Impact of Risk Attitudes

Shizhen Bai and Xuelian Jia
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Shizhen Bai: School of Management, Harbin University of Commerce, Harbin 150028, China
Xuelian Jia: School of Management, Harbin University of Commerce, Harbin 150028, China

Sustainability, 2022, vol. 14, issue 14, 1-18

Abstract: Bank and e-commerce financing strategies are the main ways for farmers to solve the problem of capital shortage. Aiming at the uncertainty risk of the output of the agricultural product supply chain, we consider the risk attitudes of farmers; construct the Stackelberg game model under different financing strategies to obtain the optimal decision of e-commerce and farmers; and explore the expected output factors, the degree of farmers’ risk aversion, e-commerce’s interest rates on the decision-making results. Our research found that farmers with low-risk aversion prefer to choose the e-commerce financing strategy when the e-commerce’s interest rates are lower. In addition, farmers’ risk-averse attitudes lead to lower equilibrium decision-making between farmers and e-entrepreneurs, which is not conducive to the interests of e-commerce and farmers. A higher expected output factor reduces farmers’ production inputs and e-commerce purchase price. When the expected output factor is low, the decision of whether e-commerce provides financing services to farmers is only affected by interest rates, and lower interest rates create more value for e-commerce.

Keywords: financing strategy; risk aversion; CVaR; optimal decision (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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