Supply-Chain Finance and Investment Efficiency: The Perspective of Sustainable Development

Xinli Li (), Junzhou Yan, Jun Cheng and Jiaying Li
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Xinli Li: School of Business, Zhengzhou University of Aeronautics, Zhengzhou 450046, China
Junzhou Yan: School of Business, Zhengzhou University of Aeronautics, Zhengzhou 450046, China
Jun Cheng: School of Economic, Zhengzhou University of Aeronautics, Zhengzhou 450046, China
Jiaying Li: School of Accounting, Henan University of Economics and Law, Zhengzhou 450046, China

Sustainability, 2023, vol. 15, issue 10, 1-17

Abstract: Recent debates regarding supply-chain finance have separated financial attributes from supply-chain attributes, ignoring their unity and the utilization efficiency of funds after financing. Can supply-chain finance affect corporate investment efficiency? There is still insufficient research in existing studies. In this paper, multiple regression analysis is used on 9757 listed companies in China for the period 2010–2020, to empirically test the impact of supply-chain finance on investment efficiency by integrating financial and supply-chain attributes of supply-chain finance, and we further analyze its mechanism. The results show that supply-chain finance can alleviate corporate under-investment and inhibit over-investment. The relationship is stronger for nonstate-owned corporations and is stronger when corporations operate in a superior information environment. Further, financial constraint plays an intermediary role between supply-chain finance and under-investment, while corporate social responsibility plays an intermediary role between supply-chain finance and over-investment. This study enriches the relevant research on the economic consequences of supply-chain finance, and provides new evidence for how supply-chain finance can promote the high-quality development of the real economy.

Keywords: supply-chain finance; investment efficiency; corporate social responsibility; financial constraint (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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