How Does Supply Chain Information Disclosure Relate to Corporate Investment Efficiency? Evidence from Chinese-Listed Companies

Di Gao, Yuan Zhao and Jiangming Ma ()
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Di Gao: School of International Business, Southwestern University of Finance and Economics, Chengdu 611130, China
Yuan Zhao: School of International Business, Southwestern University of Finance and Economics, Chengdu 611130, China
Jiangming Ma: School of Economics, Xihua University, Chengdu 610039, China

Sustainability, 2023, vol. 15, issue 8, 1-22

Abstract: Supply chain information disclosure is a vital factor for corporate investment efficiency and can signal a corporation’s long-term sustainable development. However, little attention has been paid to its significance. In this paper, we investigate how supply chain information disclosure affects corporate investment decisions. Using a sample of Chinese-listed firms, we find that firms that disclose nonfinancial information are more likely to have a high level of investment efficiency. We also identify the mechanism underlying the effect by examining the mediating effect of financial constraints and agency costs. Increasing a firm’s supply chain information disclosure can improve its investment efficiency by reducing its financial constraints and agency costs. We further find that this positive impact is more pronounced for non-state-owned enterprises (non-SOEs) and firms located in regions with a high degree of marketization. Our findings imply that supply chain information disclosure plays an important role in corporate investment efficiency and sustainable development. Our study emphasizes the importance of nonfinancial information disclosure, contributing to the literature investigating the role of supply chain management in corporate decision-making on sustainable development.

Keywords: sustainable development; supply chain information disclosure; investment efficiency; agency conflict; financial constraints (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
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