Abstract

ABSTRACT This study investigates the impact of digital transformation (DT) on trade credit (TC) within Chinese A-share listed manufacturing companies from 2008 to 2020. Utilizing information asymmetry theory and signal transmission theory, the study explores the relationship between DT and TC. Our findings reveal that DT has a notably positive effect on TC, with this impact being more pronounced in privately-owned enterprises, small and medium-sized entities, and particularly those outside the high-tech industry. Additionally, DT is found to foster TC expansion through enhanced cooperation within supply chains and improved relationships with suppliers and customers. These insights offer a comprehensive understanding of how DT influences corporate TC financing behavior and have significant implications for DT practices and policy decisions.

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