The Effect of the Supply Chain Finance on Trading Enterprises and the Promotion of Financial Information System

ABSTRACT

COVID-19 has a significant impact on the global supply chain, and enterprises involved in international trade may face more uncertainties. Financing constraints restrict the development of trading enterprises, while supply chain finance can help trading enterprises obtain more funds and reduce the risks in trade. This paper uses the data of trading enterprises from 2011 to 2020 and adopts cash-cash flow sensitivity model to study the relationship between supply chain finance and enterprise financing constraints. The results show that supply chain finance can significantly alleviate the financing constraints and reduce the cash-cash flow sensitivity of trading enterprises. In addition, this paper also puts forward suggestions from aspects of the government, financial markets and enterprises to promote the application of the information system of supply chain finance in international trade. © 2021 IEEE.