Transformative Trends in Supply Chain Finance Digitization and Financial Ecosystems

Abstract

A lot of attention has been paid to supply chain finance since it is a crucial financial tool to promote the sustainable growth of the real economy. The study results on 3181 non-financial companies that were listed on the Chinese A-share market between 2012 and 2021 are presented in this article. A method known as multiple regression analysis is used to look at the connection between supply network finance and business financialization. It also looks at how supply chain finance affects company financialization and the processes that support it.The study's data specifically show that the supply chain finance model, which is controlled by core firms, makes it much harder for Chinese companies to get loans. A big part of companies are small and medium-sized ones. Because of this, supply chain financing is more strongly linked to the "financialization" of businesses. This has a big calming effect on state-owned companies and gets worse over time when the main companies have more knowledge than they would otherwise. This dependence also has a big effect on the rise of the supply chain finance boost, which is an important factor. This paper adds to the academic conversation by sharing its findings on how to improve supply chain finance and help the real economy grow in a way that is sustainable. In order to get the results that are wanted, an excellent supply chain finance model must be matched with the needs for China's real economy to grow. Businesses should get financial help, but the government should also encourage the growth of a positive loop in the industry chain and put making things ahead of investing money.