Abstract
ABSTRACT Supply chain finance (SCF) is a buyer-led financial innovation used to optimize working capital and increase liquidity within the supply chain. Advertised as win-win, little is known of the benefits to firms or shareholders. I explore whether these arrangements are beneficial to the initiating firm and whether such benefits percolate to the buyer’s investors. I find that although a firm’s days payable outstanding increases post-adoption, SCF arrangements are not beneficial to all firms. Liquidity and profitability decrease post-adoption. I also find that shareholders respond negatively to SCF adoptions, but this response may be attenuated by some firms increasing share repurchases.
Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
