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Can supply chain finance policies enhance SMEs' Financial positions?

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  • Hu, Xueqin

Abstract

This study examines how supply chain finance (SCF) policies impact Chinese SMEs’ financial health using A-share data. The 2020 REPS implementation significantly reduces cash conversion cycles, enhancing liquidity and operational efficiency. Robustness checks confirm the robustness of these findings.

Suggested Citation

  • Hu, Xueqin, 2025. "Can supply chain finance policies enhance SMEs' Financial positions?," Economics Letters, Elsevier, vol. 247(C).
    • Handle: RePEc:eee:ecolet:v:247:y:2025:i:c:s0165176525000308
    DOI: 10.1016/j.econlet.2025.112193
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    References listed on IDEAS

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    1. Wang, Baolian, 2019. "The cash conversion cycle spread," Journal of Financial Economics, Elsevier, vol. 133(2), pages 472-497.
    2. Allen N. Berger & Gregory F. Udell, 2002. "Small Business Credit Availability and Relationship Lending: The Importance of Bank Organisational Structure," Economic Journal, Royal Economic Society, vol. 112(477), pages 32-53, February.
    3. Xuedong Liang & Xianli Zhao & Min Wang & Zhi Li, 2018. "Small and Medium-Sized Enterprises Sustainable Supply Chain Financing Decision Based on Triple Bottom Line Theory," Sustainability, MDPI, vol. 10(11), pages 1-17, November.
    4. Klapper, Leora, 2006. "The role of factoring for financing small and medium enterprises," Journal of Banking & Finance, Elsevier, vol. 30(11), pages 3111-3130, November.
    5. Wen, Huwei & Lee, Chien-Chiang & Zhou, Fengxiu, 2021. "Green credit policy, credit allocation efficiency and upgrade of energy-intensive enterprises," Energy Economics, Elsevier, vol. 94(C).
    6. Gruber, Edelgard & Brand, Michael, 1991. "Promoting energy conservation in small and medium-sized companies," Energy Policy, Elsevier, vol. 19(3), pages 279-287, April.
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    Keywords

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    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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