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

Hongjun Han, Shu Song and Tian, Grace (Li)

International Review of Economics & Finance, 2025, vol. 103, issue C

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.

Keywords: Supply chain finance; Solvency; Corporate litigation (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:103:y:2025:i:c:s1059056025006409

DOI: 10.1016/j.iref.2025.104477

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