Does Supply Chain Finance Improve the Corporate Investment Efficiency of New Energy Firms? Evidence from China

ABSTRACT

This research investigates how supply chain finance (SCF) affects the investment efficiency of new energy firms by adopting a sample of Chinese listed new energy enterprises from 2011 to 2019. With the help of data envelopment analysis (DEA) combined with the Banker-Charnes-Cooper (BCC) model, we calculate efficiency values and analyze the regression results of the Tobit model, and find that SCF significantly boosts the investment efficiency of new energy corporations by improving their cash-holding position. The results of mechanism analysis also suggest that both supply chain concentration and digital finance positively magnify the relation between SCF and corporate efficiency. After comparing the impact in the new energy firms with different characteristics, we conclude that the SCF effect in promoting corporate investment efficiency is more prominent for non-state-owned new energy enterprises located in the western region that have low equity concentration. The conclusions of this paper shed new light on the fusion of the SCF business into building a new energy industry cluster.

KEYWORDS:

• Supply chain finance (SCF)
• investment efficiency
• new energy enterprises
• mechanism analysis
• digital finance

JEL:

• D22
• D57
• G24
• G28
• G30
• Q43
• Q48

Disclosure Statement

No potential conflict of interest was reported by the author(s).

Additional information

Funding

This first author is grateful to the National Social Science Foundation Key Project of China for financial support through [Grant No: 22AJL004].