The Sino-U.S. trade war: Challenges for trade credit financing and the role of corporate culture

Yuyou Chen, Sirui Cheng and Yuning Zhang

Pacific-Basin Finance Journal, 2025, vol. 91, issue C

Abstract: This research demonstrates that the Sino-U.S. trade war decreases the acquisition of trade credit of the firms exposed to risk in trade with the U.S., and a strong corporate culture can mitigate the adverse effects of the Sino-U.S. trade war outbreak on Chinese firms. We also find that a strong corporate culture can help enhance firms' innovation and transparency, boosting product competitiveness and upstream suppliers' trust. These effects are more pronounced in non-state-owned enterprises. We show that international trading conflict hurts the financing of Chinese enterprises, and well-established informal institutions can mitigate these adverse effects.

Keywords: Sino-U.S. trade war; Risk exposure; Trade credit; Corporate culture (search for similar items in EconPapers)
JEL-codes: F51 G32 Z13 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:91:y:2025:i:c:s0927538x2500040x

DOI: 10.1016/j.pacfin.2025.102703

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