142
Views
1
CrossRef citations to date
0
Altmetric
Regular Articles

Accounts Receivable Reform and Financing Constraints: Evidence from China’s A-Share Market

, &

References

  • Abdulla, Y., V. A. Dang, and A. Khurshed. 2020. Suppliers’ listing status and trade credit provision. Journal of Corporate Finance 60:101535. doi:10.1016/j.jcorpfin.2019.101535.
  • Agarwal, S., and Y. H. Chua. 2020. FinTech and household finance: A review of the empirical literature. China Finance Review International 10 (4):361–376. doi:10.1108/CFRI-03-2020-0024.
  • Aktas, N., E. De Bodt, F. Lobez, and J. C. Statnik. 2012. The information content of trade credit. Journal of Banking and Finance 36 (5):1402–13. doi:10.1016/j.jbankfin.2011.12.001.
  • Al-Hadi, A., and A. Al-Abri. 2022. Firm-level trade credit responses to COVID-19-induced monetary and fiscal policies: International evidence. Research in International Business and Finance 60:101568. doi:10.1016/j.ribaf.2021.101568.
  • Altunok, F., K. Mitchell, and D. K. Pearce. 2020. The trade credit channel and monetary policy transmission: Empirical evidence from US panel data. The Quarterly Review of Economics & Finance 78:226–50. doi:10.1016/J.QREF.2020.03.001.
  • Amihud, Y., and H. Mendelson. 1986. Liquidity and stock returns. Financial Analysts Journal 42 (3):43–48. doi:10.2469/faj.v42.n3.43.
  • Anderson, S. P., A. De Palma, and B. Kreider. 2001. The efficiency of indirect taxes under imperfect competition. Journal of Public Economics 81 (3):231–51. doi:10.1016/S0047-2727(00)00085-2.
  • Andrieu, G., R. Staglianò, and P. Van Der Zwan. 2018. Bank debt and trade credit for SMEs in Europe: Firm-, industry-, and country-level determinants. Small Business Economics 51 (1):245–264. doi:10.1007/s11187-017-9926-y.
  • Arca, P., G. Atzeni, and L. Deidda. 2023. The signaling role of trade credit: Evidence from a counterfactual analysis. Journal of Corporate Finance 80:102414. doi:10.1016/j.jcorpfin.2023.102414.
  • Arner, D. W., R. P. Buckley, D. A. Zetzsche, and R. Veidt. 2020. Sustainability, FinTech and financial inclusion. European Business Organization Law Review 21:7–35. doi:10.1007/s40804-020-00183-y.
  • Baños-Caballero, S., P. J. García-Teruel, and P. Martínez-Solano. 2014. Working capital management, corporate performance, and financial constraints. Journal of Business Research 67 (3):332–338. doi:10.1016/j.jbusres.2013.01.016.
  • Barrot, J. N. 2016. Trade credit and industry dynamics: Evidence from trucking firms. The Journal of Finance 71 (5):1975–2016. doi:10.1111/jofi.12371.
  • Bernanke, B., and M. Gertler. 1989. Agency costs, net worth, and business fluctuations. American Economic Review 79:14–31. doi:10.22004/ag.econ.292693.
  • Biais, B., and C. Gollier. 1997. Trade credit and credit rationing. The Review of Financial Studies 10 (4):903–937. doi:10.1093/rfs/10.4.903.
  • Boisjoly, R. P., T. E. Conine Jr, and M. B. McDonald IV. 2020. Working capital management: Financial and valuation impacts. Journal of Business Research 108:1–8. doi:10.1016/j.jbusres.2019.09.025.
  • Box, T., R. Davis, M. Hill, and C. Lawrey. 2018. Operating performance and aggressive trade credit policies. Journal of Banking & Finance 89:192–208. doi:10.1016/j.jbankfin.2018.02.011.
  • Buchak, G., G. Matvos, T. Piskorski, and A. Seru. 2018. Fintech, regulatory arbitrage, and the rise of shadow banks. Journal of Financial Economics 130 (3):453–83. doi:10.1016/j.jfineco.2018.03.011.
  • Burkart, M., and T. Ellingsen. 2004. In-kind finance: A theory of trade credit. American Economic Review 94 (3):569–590. doi:10.1257/0002828041464579.
  • Bushman, R., and A. Smith. 2001. Financial accounting information and corporate governance. Journal of Accounting and Economics 32 (1):237–333. doi:10.1016/S0165-4101(01)00027-1.
  • Cao, Z., S. X. Chen, and E. Lee. 2022. Does business strategy influence interfirm financing? evidence from trade credit. Journal of Business Research 141:495–511. doi:10.1016/j.jbusres.2021.11.050.
  • Caselli, S., G. Corbetta, D. Cucinelli, and M. Rossolini. 2021. A survival analysis of public guaranteed loans: Does financial intermediary matter? Journal of Financial Stability 54:100880. doi:10.1016/j.jfs.2021.100880.
  • Chen, L., A. Moretto, F. Jia, F. Caniato, and Y. Xiong. 2021. The role of digital transformation to empower supply chain finance: Current research status and future research directions (guest editorial). International Journal of Operations & Production Management 41 (4):277–88. doi:10.1108/IJOPM-04-2021-838.
  • Chen, S., H. Ma, and Q. Wu. 2019. Bank credit and trade credit: Evidence from natural experiments. Journal of Banking & Finance 108:105616. doi:10.1016/j.jbankfin.2019.105616.
  • Chod, J., E. Lyandres, and S. A. Yang. 2019. Trade credit and supplier competition. Journal of Financial Economics 131 (2):484–505. doi:10.1016/j.jfineco.2018.08.008.
  • Costa, M. D., and A. Habib. 2021. Trade credit and cost stickiness. Accounting & Finance 61 (1):1139–1179. doi:10.1111/acfi.12606.
  • Cunat, V. 2007. Trade credit: Suppliers as debt collectors and insurance providers. The Review of Financial Studies 20 (2):491–527. doi:10.1093/rfs/hhl015.
  • Delipalla, S., and M. Keen. 1992. The comparison between ad valorem and specific taxation under imperfect competition. Journal of Public Economics 49 (3):351–61. doi:10.1016/0047-2727(92)90073-O.
  • Deloof, M. 2003. Does working capital management affect profitability of Belgian firms? Journal of Business Finance & Accounting 30:573–87. doi:10.1111/1468-5957.00008.
  • Deng, S., K. Fu, J. Xu, and K. Zhu. 2021. The supply chain effects of trade credit under uncertain demands. Omega 98:102113. doi:10.1016/j.omega.2019.102113.
  • Denis, D. J. 2011. Financial flexibility and corporate liquidity. Journal of Corporate Finance 17 (3):667–74. doi:10.1016/j.jcorpfin.2011.03.006.
  • Dye, R. 1993. Auditing standards, legal liability, and auditor wealth. Journal of Political Economy 101 (5):887–914. doi:10.1086/261908.
  • Emery, G. W. 1984. A pure financial explanation for trade credit. The Journal of Financial and Quantitative Analysis 19 (3):271–285. doi:10.2307/2331090.
  • Erel, I., and J. Liebersohn. 2022. Can FinTech reduce disparities in access to finance? Evidence from the paycheck protection program. Journal of Financial Economics 146 (1):90–118. doi:10.1016/j.jfineco.2022.05.004.
  • Fabbri, D., and A. M. C. Menichini. 2010. Trade credit, collateral liquidation, and borrowing constraints. Journal of Financial Economics 96 (3):413–32. doi:10.1016/j.jfineco.2010.02.010.
  • Fazzari, S. M., and B. C. Petersen. 1993. Working capital and fixed investment: New evidence on financing constraints. The RAND Journal of Economics 24 (3):328–42. doi:10.2307/2555961.
  • Ferrando, A., and K. Mulier. 2013. Do firms use the trade credit channel to manage growth? Journal of Banking & Finance 37 (8):3035–3046. doi:10.1016/j.jbankfin.2013.02.013.
  • Fisman, R., and I. Love. 2003. Trade credit, financial intermediary development, and industry growth. The Journal of Finance 58:353–74. doi:10.1111/1540-6261.00527.
  • Frynas, J. G. 2010. Corporate social responsibility and societal governance: Lessons from transparency in the oil and gas sector. Journal of Business Ethics 93:163–79. doi:10.1007/s10551-010-0559-1.
  • Fuster, A., M. Plosser, P. Schnabl, and J. Vickery. 2019. The role of technology in mortgage lending. The Review of Financial Studies 32 (5):1854–1899. doi:10.1093/rfs/hhz018.
  • Gabor, D., and S. Brooks. 2017. The digital revolution in financial inclusion: International development in the fintech era. New Political Economy 22 (4):423–36. doi:10.1080/13563467.2017.1259298.
  • Garcia-Appendini, E. 2011. Supplier certification and trade credit. Available at SSRN 1795107. doi:10.2139/ssrn.1795107.
  • Garcia-Appendini, E., and J. Montoriol-Garriga. 2013. Firms as liquidity providers: Evidence from the 2007–2008 financial crisis. Journal of Financial Economics 109 (1):272–291. doi:10.1016/j.jfineco.2013.02.010.
  • Ge, Y., and J. Qiu. 2007. Financial development, bank discrimination and trade credit. Journal of Banking & Finance 31 (2):513–530. doi:10.1016/j.jbankfin.2006.07.009.
  • Giannetti, M., M. Burkart, and T. Ellingsen. 2011. What you sell is what you lend? Explaining trade credit contracts. The Review of Financial Studies 24 (4):1261–1298. doi:10.1093/rfs/hhn096.
  • Giannetti, M., N. Serrano-Velarde, and E. Tarantino. 2021. Cheap trade credit and competition in downstream markets. Journal of Political Economy 129 (6):1744–1796. doi:10.1086/713731.
  • Goldfarb, A., and C. Tucker. 2019. Digital economics. Journal of Economic Literature 57 (1):3–43. doi:10.1257/jel.20171452.
  • Gosman, M., T. Kelly, P. Olsson, and T. Warfield. 2004. The profitability and pricing of major customers. Review of Accounting Studies 9 (1):117–139. doi:10.1023/B:RAST.0000013631.48714.c1.
  • Goto, S., G. Xiao, and Y. Xu. 2015. As told by the supplier: Trade credit and the cross section of stock returns. Journal of Banking & Finance 60:296–309. doi:10.1016/j.jbankfin.2015.08.030.
  • Hadlock, C., and J. Pierce. 2010. New evidence on measuring financial constraints: Moving beyond the KZ index. Review of Financial Studies 23 (5):1909–1940. doi:10.1093/rfs/hhq009.
  • Hasan, M. M., and A. Habib. 2019. Social capital and trade credit. International Review of Financial Analysis 61:158–174. doi:10.1016/j.irfa.2018.10.002.
  • Hill, M. D., G. W. Kelly, L. A. Preve, and V. Sarria-Allende. 2017. Trade credit or financial credit? An international study of the choice and its influences. Emerging Markets Finance and Trade 53 (10):2318–2332. doi:10.1080/1540496x.2017.1319355.
  • Hoberg, G., and G. Phillips. 2016. Text-based network industries and endogenous product differentiation. Journal of Political Economy 124 (5):1423–1465. doi:10.1086/688176.
  • Huang, H., X. Shi, and S. Zhang. 2011. Counter-cyclical substitution between trade credit and bank credit. Journal of Banking & Finance 35 (8):1859–1878. doi:10.1016/j.jbankfin.2010.12.009.
  • Jiang, F., X. Xia, and X. Zheng. 2021. Does controlling shareholders’ share pledging raise suppliers’ eyebrows? Pacific-Basin Finance Journal 66:101511. doi:10.1016/j.pacfin.2021.101511.
  • Kaplan, S. N., and L. Zingales. 1997. Do investment-cash flow sensitivities provide useful measures of financing constraints? The Quarterly Journal of Economics 112 (1):169–215. doi:10.1162/003355397555163.
  • Karaman, K. K., and S. Yıldırım-Karaman. 2019. How does financial development alter the impact of uncertainty? Journal of Banking & Finance 102:33–42. doi:10.1016/j.jbankfin.2019.03.008.
  • Kieschnick, R., M. Laplante, and R. Moussawi. 2013. Working capital management and shareholders’ wealth. Review of Finance 17 (5):1827–1852. doi:10.1093/rof/rfs043.
  • Kong, D., Y. Pan, G. G. Tian, and P. Zhang. 2020. CEOs’ hometown connections and access to trade credit: Evidence from China. Journal of Corporate Finance 62:101574. doi:10.1016/j.jcorpfin.2020.101574.
  • Lang, M. H., and R. J. Lundholm. 1996. Corporate disclosure policy and analyst behavior. Accounting Review 467–92. doi:10.1016/0361-3682(95)00051-8.
  • Lawrenz, J., and J. Oberndorfer. 2018. Firm size effects in trade credit supply and demand. Journal of Banking & Finance 93:1–20. doi:10.1016/j.jbankfin.2018.05.014.
  • Lee, C. C., C. W. Wang, and S. J. Ho. 2020. Financial inclusion, financial innovation, and firms’ sales growth. International Review of Economics & Finance 66:189–205. doi:10.1016/j.iref.2019.11.021.
  • Lee, C. C., X. Li, C. H. Yu, and J. Zhao. 2021. Does fintech innovation improve bank efficiency? Evidence from China’s banking industry. International Review of Economics & Finance 74:468–483. doi:10.1016/j.iref.2021.03.009.
  • Lee, I., and Y. J. Shin. 2018. Fintech: Ecosystem, business models, investment decisions, and challenges. Business Horizons 61 (1):35–46. doi:10.1016/j.bushor.2017.09.003.
  • Lehar, A., V. Y. Song, L. Yuan, and I. Goldstein. 2020. Industry structure and the strategic provision of trade credit by upstream firms. The Review of Financial Studies 33 (10):4916–4972. doi:10.1093/rfs/hhaa002.
  • Li, C., S. He, Y. Tian, S. Sun, and L. Ning. 2022. Does the bank’s FinTech innovation reduce its risk-taking? Evidence from China’s banking industry. Journal of Innovation & Knowledge 7 (3):100219. doi:10.1016/j.jik.2022.100219.
  • Li, Y., M. Zhou, Y. Du, and W. Zhao. 2018. Legal system and trade credit: Evidence from emerging economies. Emerging Markets Finance and Trade 54 (10):2207–2224. doi:10.1080/1540496X.2018.1460271.
  • Lin, M., N. R. Prabhala, and S. Viswanathan. 2013. Judging borrowers by the company they keep: Friendship networks and information asymmetry in online peer-to-peer lending. Management Science 59 (1):17–35. doi:10.1287/mnsc.1120.1560.
  • Lin, S., and H. Ye. 2018. The international credit channel of US monetary policy transmission to developing countries: Evidence from trade data. Journal of Development Economics 133:33–41. doi:10.1016/j.jdeveco.2018.01.007.
  • Liu, G., and S. Wang. 2023. Digital transformation and trade credit provision: Evidence from China. Research in International Business and Finance 64:101805. doi:10.1016/j.ribaf.2022.101805.
  • Long, M. S., I. B. Malitz, and S. A. Ravid. 1993. Trade credit, quality guarantees, and product marketability. Financial Management 22 (4):117–127. doi:10.2307/3665582.
  • Love, I., L. A. Preve, and V. Sarria-Allende. 2007. Trade credit and bank credit: Evidence from recent financial crises. Journal of Financial Economics 83 (2):453–469. doi:10.1016/j.jfineco.2005.11.002.
  • Ma, H., and D. Hao. 2022. Economic policy uncertainty, financial development, and financial constraints: Evidence from China. International Review of Economics & Finance 79:368–386. doi:10.1016/j.iref.2022.02.027.
  • Mansha, S., A. Inam Bhutta, G. Antonucci, and C. W. Hooy. 2022. Do political connections matter for firm trade credit? Emerging Markets Finance and Trade 58 (14):4014–4032. doi:10.1080/1540496X.2022.2083497.
  • McGuinness, G., and T. Hogan. 2016. Bank credit and trade credit: Evidence from SMEs over the financial crisis. International Small Business Journal 34 (4):412–45. doi:10.1177/0266242614558314.
  • McGuinness, G., T. Hogan, and R. Powell. 2018. European trade credit use and SME survival. Journal of Corporate Finance 49:81–103. doi:10.1016/j.jcorpfin.2017.12.005.
  • Murfin, J., and K. Njoroge. 2015. The implicit costs of trade credit borrowing by large firms. The Review of Financial Studies 28 (1):112–145. doi:10.1093/rfs/hhu051.
  • Nilsen, J. H. 2002. Trade credit and the bank lending channel. Journal of Money, Credit, and Banking 34 (1):226–53. doi:10.2139/ssrn.762468.
  • Petersen, M. A., and R. G. Rajan. 1997. Trade credit: Theories and evidence. The Review of Financial Studies 10 (3):661–691. doi:10.1093/rfs/10.3.661.
  • Pinto, A. P. S., C. M. R. Henriques, C. E. O. D. S. Cardoso, and M. E. D. Neves. 2023. Bank credit and trade credit: The case of Portuguese SMEs from 2010 to 2019. Journal of Risk and Financial Management 16 (3):170. doi:10.3390/jrfm16030170.
  • Psillaki, M., and K. Eleftheriou. 2015. Trade credit, bank credit, and flight to quality: Evidence from French SMEs. Journal of Small Business Management 53 (4):1219–1240. doi:10.1111/jsbm.12106.
  • Qian, H., Y. Tao, S. Cao, and Y. Cao. 2020. Theoretical and empirical analysis on the development of digital finance and economic growth in China. The Journal of Quantitative & Technical Economics 37 (6):26–46. In Chinese. doi:10.13653/j.cnki.jqte.2020.06.002.
  • Rajan, R. G., and L. Zingales. 1995. What do we know about capital structure? Some evidence from international data. The Journal of Finance 50 (5):1421–1460. doi:10.1111/j.1540-6261.1995.tb05184.x.
  • Sah, N. B., and D. G. More. 2022. Dual class firms and trade credit. Finance Research Letters 46:102303. doi:10.1016/j.frl.2021.102303.
  • Sheng, H. H., A. B. Bortoluzzo, and G. A. P. dos Santos. 2013. Impact of trade credit on firm inventory investment during financial crises: Evidence from Latin America. Emerging Markets Finance and Trade 49 (sup4):32–52. doi:10.2753/REE1540-496X4905S403.
  • Sheng, T. 2021. The effect of fintech on banks’ credit provision to SMEs: Evidence from China. Finance Research Letters 39:101558. doi:10.1016/j.frl.2020.101558.
  • Sheng, T., and C. Fan. 2020. Fintech, optimal banking market structure, and credit supply for SMEs. Journal of Financial Research (Jinrong Yanjiu) 6:114–32. In Chinese. http://www.jryj.org.cn/EN/Y2020/V480/I6/114
  • Smith, J. K. 1987. Trade credit and informational asymmetry. The Journal of Finance 42 (4):863–872. doi:10.1111/j.1540-6261.1987.tb03916.x.
  • Stiglitz, J. E., and A. Weiss. 1981. Credit rationing in markets with imperfect information. The American Economic Review 71 (3):393–410. doi:10.7916/D8V12FT1.
  • Tan, O. F., and A. V. C. I. Emin. 2020. Inventory investment and cash flow sensitivity: Evidence from Turkish firms. Journal of Business Economics and Finance 9 (2):182–88. doi:10.17261/pressacademia.2020.1223.
  • Tang, S., A. Wu, and J. Zhu. 2020. Digital finance and Enterprise technology innovation: structure feature, mechanism identification and effect difference under financial supervision. Management World 36 (5):52–67. In Chinese. doi:10.19744/j.cnki.11-1235/f.2020.0069.
  • Vig, V. 2013. Access to collateral and corporate debt structure: Evidence from a natural experiment. The Journal of Finance 63 (8):881–928. doi:10.1111/jofi.12020.
  • Wang, Y., B. Liu, H. K. Chan, and T. Zhang. 2023. Who pays buyers for not disclosing supplier lists? Unlocking the relationship between supply chain transparency and trade credit. Journal of Business Research 155:113404. doi:10.1016/j.jbusres.2022.113404.
  • Wu, W., M. Firth, and O. M. Rui. 2014. Trust and the provision of trade credit. Journal of Banking & Finance 39:146–159. doi:10.1016/j.jbankfin.2013.11.019.
  • Xu, Q., C. Tan, C. Jiang, and Q. Zhao. 2022. Surname relationship and trade credit: Evidence from China. Research in International Business and Finance 60:101577. doi:10.1016/j.ribaf.2021.101577.
  • Yang, S. A., and J. R. Birge. 2013. How inventory is (should be) financed: Trade credit in supply chains with demand uncertainty and costs of financial distress. Available at SSRN 1734682. doi:10.2139/ssrn.1734682.
  • Yano, G., and M. Shiraishi. 2014. Factors in the development of trade credit: Case study of provinces in China. Emerging Markets Finance and Trade 50 (sup2):114–134. doi:10.2753/REE1540-496X5002S208.
  • Zhang, Y., H. Liu, S. Li, and C. Xing. 2023. The digital transformation effect in trade credit uptake: The buyer perspective. Emerging Markets Finance and Trade 59 (7):2056–2078. doi:10.1080/1540496X.2023.2172319.
  • Zhou, Z., and Z. Li. 2023. Corporate digital transformation and trade credit financing. Journal of Business Research 160:113793. doi:10.1016/j.jbusres.2023.113793.

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.