Supply Chain Finance Arrangements and Shareholder Benefits

Leiza Nochebuena-Evans

The International Trade Journal, 2023, vol. 37, issue 1, 47-69

Abstract: Supply chain finance (SCF) is a buyer-led financial innovation used to optimize working capital and increase liquidity within the supply chain. Advertised as win-win, little is known of the benefits to firms or shareholders. I explore whether these arrangements are beneficial to the initiating firm and whether such benefits percolate to the buyer’s investors. I find that although a firm’s days payable outstanding increases post-adoption, SCF arrangements are not beneficial to all firms. Liquidity and profitability decrease post-adoption. I also find that shareholders respond negatively to SCF adoptions, but this response may be attenuated by some firms increasing share repurchases.

Date: 2023
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1080/08853908.2022.2140230 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:uitjxx:v:37:y:2023:i:1:p:47-69

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/uitj20

DOI: 10.1080/08853908.2022.2140230

Access Statistics for this article

The International Trade Journal is currently edited by George R. G. Clarke

More articles in The International Trade Journal from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().