Does digital transformation matter for trade credit provision? Evidence from China

Linyin Cheng

Pacific-Basin Finance Journal, 2024, vol. 86, issue C

Abstract: This study demonstrated that digital transformation can promote the supply of trade credit in China. The results are robust to different measures of trade credit provision and endogeneity. The impact of digital transformation on trade credit provision is more pronounced among firms in regions with lower marketization and worse information environment. This study investigates this potential channel and finds that digital transformation increases trade credit provision by improving firms' financing availability. Overall, the results are consistent with the financial theory of trade credit.

Keywords: Digital transformation; Trade credit; Accounts receivable; Corporate decision; China (search for similar items in EconPapers)
JEL-codes: G32 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:86:y:2024:i:c:s0927538x24001732

DOI: 10.1016/j.pacfin.2024.102422

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