 Spillover effect of corporate digitalization in the supply chain: Perspective of trade credit financingMingsheng Hu, Xu Yang, You Zhu and Gazi Uddin Global Finance Journal, 2024, vol. 62, issue C Abstract: We investigate the degree of digitalization required to gain a competitive advantage in the supply chain by developing a firm-specific metric based on firm disclosure. Using a 2011–2020 sample of Chinese listed firms, we examine whether improving corporate digitalization can bring more trade credit financing from the supply chain. Our findings indicate that firms acquire more trade credit after increasing their level of digitalization, despite the low pressure of credit rationing. Furthermore, digitalization improves operation, research and development, and governance efficiency, giving such firms a competitive advantage. Cross-sectional analyses indicate that specific characteristics, such as a large firm size, state-owned property, traditional industry type, stable macropolicy environment, high industry status, and transparent internal information environment, can bolster this competitive advantage. In general, we highlight the role of digitalization in improving firms' competitiveness in the supply chain from the perspective of trade credit financing. Keywords: Digitalization; Trade credit; Textual analysis; Efficiency; Information environment (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:glofin:v:62:y:2024:i:c:s1044028324000814 DOI: 10.1016/j.gfj.2024.101009 Access Statistics for this article Global Finance Journal is currently edited by Manuchehr Shahrokhi More articles in Global Finance Journal from Elsevier |
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