TY - JOUR
T1 - Shift in corporate financing strategies
T2 - The impact of targeted poverty alleviation on trade credit
AU - Zhou, Jing
AU - Yang, Ying
AU - Zhang, Fang
AU - Jiu, Lili
N1 - Jing Zhou acknowledges financial support from the Chongqing Social Science Planning Project (Grant No. 2021BS042) and Lili Jiu acknowledges financial support from Research Development Fund of XJTLU (Grant No. RDF-22-02-007), National Social Science Fund of China (Grant No. 23BJY109), and the National Natural Science Foundation of China (Grant No. 72272018).
Publisher Copyright:
© 2025 Elsevier B.V. All rights are reserved, including those for text and data mining, AI training, and similar technologies.
PY - 2025/9
Y1 - 2025/9
N2 - This study examines the impact of corporate targeted poverty alleviation (TPA) initiatives on trade credit financing. We find that firms engaging in TPA activities experience a significant reduction in their reliance on trade credit. This effect is more pronounced for firms with higher operational risk, those located in regions with lower financial development, and those participating in TPA through industrial development projects. Mechanism analysis reveals that TPA participation enhances firms' access to bank loans and lowers financing cost, thereby reducing their dependence on trade credit. Our study contributes to the literature by demonstrating how government-initiated corporate social engagement shapes firms' financing strategies. It also provides practical insights for policymakers and firms, highlighting the government role in addressing the challenges in trade credit markets.
AB - This study examines the impact of corporate targeted poverty alleviation (TPA) initiatives on trade credit financing. We find that firms engaging in TPA activities experience a significant reduction in their reliance on trade credit. This effect is more pronounced for firms with higher operational risk, those located in regions with lower financial development, and those participating in TPA through industrial development projects. Mechanism analysis reveals that TPA participation enhances firms' access to bank loans and lowers financing cost, thereby reducing their dependence on trade credit. Our study contributes to the literature by demonstrating how government-initiated corporate social engagement shapes firms' financing strategies. It also provides practical insights for policymakers and firms, highlighting the government role in addressing the challenges in trade credit markets.
KW - Bank loans
KW - Financing strategies
KW - Targeted poverty alleviation
KW - Trade credit
UR - http://www.scopus.com/inward/record.url?scp=105004672428&partnerID=8YFLogxK
U2 - 10.1016/j.pacfin.2025.102795
DO - 10.1016/j.pacfin.2025.102795
M3 - Journal article
SN - 0927-538X
VL - 92
JO - Pacific Basin Finance Journal
JF - Pacific Basin Finance Journal
M1 - 102795
ER -
