Open Access Journal Article

Corporate financialization matters trade credit financing: Evidence from China’s non-financial listed companies

by Xiaohua Huang a ,  Benhuan Nie a  and  Zhehao Huang b,*
a
School of Economics and Statistics, Guangzhou University, Guangzhou, China
b
Guangzhou Institute of International Finance, Guangzhou University, Guangzhou, China
*
Author to whom correspondence should be addressed.
EAL  2024 3(3):63; https://doi.org/10.58567/eal03030004
Received: 30 July 2024 / Accepted: 16 September 2024 / Published Online: 5 November 2024
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Abstract

This study empirically examines the influence of corporate financialization on trade credit financing, focusing on non-financial companies listed in China's A-share market from 2010 to 2022. The results indicate that as corporate financialization increases, companies will obtain less trade credit financing. Further incorporating moderating factors like market position and financing constraints, we find that a higher market position effectively mitigates the negative impact of corporate financialization on trade credit financing, whereas higher financing constraints exacerbate the adverse effects of corporate financialization on trade credit financing. Additional analysis shows that corporate financialization negatively affects trade credit financing by crowding out main business performance and increasing operational risks. Moreover, corporate financialization more strongly inhibits trade credit financing in state-owned companies.

Keywords: Corporate financialization; Trade credit financing; Market position; Financing constraint;
Copyright: © 2024 by Huang, Nie and Huang. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

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ACS Style
Huang, X.; Nie, B.; Huang, Z. Corporate financialization matters trade credit financing: Evidence from China’s non-financial listed companies. Economic Analysis Letters, 2024, 3, 63. https://doi.org/10.58567/eal03030004
AMA Style
Huang X, Nie B, Huang Z. Corporate financialization matters trade credit financing: Evidence from China’s non-financial listed companies. Economic Analysis Letters; 2024, 3(3):63. https://doi.org/10.58567/eal03030004
Chicago/Turabian Style
Huang, Xiaohua; Nie, Benhuan; Huang, Zhehao 2024. "Corporate financialization matters trade credit financing: Evidence from China’s non-financial listed companies" Economic Analysis Letters 3, no.3:63. https://doi.org/10.58567/eal03030004
APA style
Huang, X., Nie, B., & Huang, Z. (2024). Corporate financialization matters trade credit financing: Evidence from China’s non-financial listed companies. Economic Analysis Letters, 3(3), 63. https://doi.org/10.58567/eal03030004

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