IDEAS home Printed from https://ideas.repec.org/p/hhs/rbnkwp/0435.html

Some searches may not work properly. We apologize for the inconvenience.

   My bibliography  Save this paper

Supply-Chain Finance: An Empirical Evaluation of Supplier Outcomes

Author

Listed:
  • Amberg, Niklas

    (Research Department, Central Bank of Sweden)

  • Jacobson, Tor

    (Research Department, Central Bank of Sweden)

  • Qi, Yingjie

    (Copenhagen Business School)

Abstract

Buyers and suppliers have diverging interests about trade-credit maturities: buyers desire long payment periods as a source of cheap funding, while suppliers prefer swift payments to avoid locking up scarce liquidity in idle assets. A fast-growing financial product innovation—supply-chain finance (SCF)—offers to resolve these diverging interests, but its net effect on suppliers is a priori unclear. We study the effects of SCF programs on suppliers using unique invoice-level data from a large Swedish bank. We find that SCF programs relax suppliers’ liquidity constraints and thereby enable them to grow their sales, employment, and investments.

Suggested Citation

  • Amberg, Niklas & Jacobson, Tor & Qi, Yingjie, 2024. "Supply-Chain Finance: An Empirical Evaluation of Supplier Outcomes," Working Paper Series 435, Sveriges Riksbank (Central Bank of Sweden).
    • Handle: RePEc:hhs:rbnkwp:0435
    as

    Download full text from publisher

    File URL: https://www.riksbank.se/globalassets/media/rapporter/working-papers/2024/no.-435-supply-chain-finance-an-empirical-evaluation-of-supplier-outcomes.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Clément de Chaisemartin & Xavier D'Haultfœuille, 2020. "Two-Way Fixed Effects Estimators with Heterogeneous Treatment Effects," American Economic Review, American Economic Association, vol. 110(9), pages 2964-2996, September.
    2. repec:cup:cbooks:9780521885881 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bas Scheer & Wiljan van den Berge & Maarten Goos & Alan Manning & Anna Salomons, 2022. "Alternative Work Arrangements and Worker Outcomes: Evidence from Payrolling," CPB Discussion Paper 435, CPB Netherlands Bureau for Economic Policy Analysis.
    2. Katrin Huber & Geske Rolvering, 2023. "Public child care and mothers’ career trajectories," Working Papers 228, Bavarian Graduate Program in Economics (BGPE).
    3. Alex Hollingsworth & Krzysztof Karbownik & Melissa A. Thomasson & Anthony Wray, 2024. "The Gift of a Lifetime: The Hospital, Modern Medicine, and Mortality," American Economic Review, American Economic Association, vol. 114(7), pages 2201-2238, July.
    4. Bhalotra, Sonia & Clarke, Damian & Mühlrad, Hanna & Palme, Mårten, 2021. "Health and Labor Market Impacts of Twin Birth : Evidence from a Swedish IVF Policy Mandate," The Warwick Economics Research Paper Series (TWERPS) 1391, University of Warwick, Department of Economics.
    5. Ran, Qiying & Yang, Xiaodong & Yan, Hongchuan & Xu, Yang & Cao, Jianhong, 2023. "Natural resource consumption and industrial green transformation: Does the digital economy matter?," Resources Policy, Elsevier, vol. 81(C).
    6. Kirill Borusyak & Peter Hull & Xavier Jaravel, 2023. "Design-Based Identification with Formula Instruments: A Review," NBER Working Papers 31393, National Bureau of Economic Research, Inc.
    7. Jack (Peiyao) Ma & Andrea Mantovani & Carlo Reggiani & Annette Broocks & Néstor Duch-Brown, 2024. "The Price Effects of Prohibiting Price Parity Clauses: Evidence from International Hotel Groups," Economics Series Working Papers 1043, University of Oxford, Department of Economics.
    8. Luo, Lianfa & Cheng, Zhiming & Ye, Qingqing & Cheng, Yanjun & Smyth, Russell & Yang, Zhiqing & Zhang, Le, 2024. "Nonmonetary awards and innovation: Evidence from winning China's Top Brand Contest," China Economic Review, Elsevier, vol. 86(C).
    9. Baker, Michael & Halberstam, Yosh & Kroft, Kory & Mas, Alexandre & Messacar, Derek, 2024. "The impact of unions on wages in the public sector: Evidence from higher education," CLEF Working Paper Series 67, Canadian Labour Economics Forum (CLEF), University of Waterloo.
    10. Zhao, Chunkai & Chen, Boou & Song, Zhiyong, 2024. "School nutritious feeding and cognitive abilities of students in poverty: Evidence from the nutrition improvement program in China," Children and Youth Services Review, Elsevier, vol. 159(C).
    11. Thomas S. Dee & Emily K. Penner, 2021. "My Brother's Keeper? The Impact of Targeted Educational Supports," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 40(4), pages 1171-1196, September.
    12. Paul Pelzl & Steven Poelhekke, 2023. "Democratization, leader education and growth: firm-level evidence from Indonesia," Journal of Economic Growth, Springer, vol. 28(4), pages 571-600, December.
    13. Hashida, Yukiko & Dundas, Steven J., 2023. "The effects of a voluntary property buyout and acquisition program on coastal housing markets: Evidence from New York," Journal of Environmental Economics and Management, Elsevier, vol. 121(C).
    14. Chen, Simiao & Jin, Zhangfeng & Bloom, David E., 2020. "Act Early to Prevent Infections and Save Lives: Causal Impact of Diagnostic Efficiency on the COVID-19 Pandemic," IZA Discussion Papers 13749, Institute of Labor Economics (IZA).
    15. Zhang, Xiaobei & Wang, Xiaojun, 2021. "Measures of human capital and the mechanics of economic growth," China Economic Review, Elsevier, vol. 68(C).
    16. Blesse, Sebastian & Diegmann, André, 2022. "The place-based effects of police stations on crime: Evidence from station closures," Journal of Public Economics, Elsevier, vol. 207(C).
    17. Milena Djourelova & Ruben Durante & Gregory J. Martin, 2021. "The Impact of Online Competition on Local Newspapers: Evidence from the Introduction of Craigslist," CESifo Working Paper Series 9090, CESifo.
    18. Thiemo Fetzer & Oliver Vanden Eynde & Austin L Wright, 2024. "Team production on the battlefield: Evidence from NATO in Afghanistan," PSE Working Papers halshs-04610715, HAL.
    19. Isabella Giorgetti & Matteo Picchio, 2021. "One billion euro programme for early childcare services in Italy," Metroeconomica, Wiley Blackwell, vol. 72(3), pages 460-492, July.
    20. Jaraitė, Jūratė & Kurtyka, Oliwia & Ollivier, Hélène, 2022. "Take a ride on the (not so) green side: How do CDM projects affect Indian manufacturing firms’ environmental performance?," Journal of Environmental Economics and Management, Elsevier, vol. 114(C).

    More about this item

    Keywords

    Trade credit; supply-chain finance; reverse factoring; financial constraints;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:rbnkwp:0435. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Lena Löfgren (email available below). General contact details of provider: https://edirc.repec.org/data/rbgovse.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.