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Unleashing Industry 4.0: Empowering corporate trade credit

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  • Qiao, Penghua
  • Qiu, Kaizhong
  • Fung, Anna
  • Fung, Hung-Gay

Abstract

Utilizing panel data from publicly listed Chinese manufacturing firms spanning 2013 to 2022, our research demonstrates a direct correlation between the adoption of Industry 4.0 technology and improvements in trade credit. Industry 4.0 also bolsters firms' total factor productivity and internal controls, thereby catalyzing the expansion of trade credit. Notably, this positive effect is accentuated in environments with favorable commercial credit conditions and a lower prevalence of alcohol consumption, particularly within firms guided by top management teams with a strong technological background and a commitment to social responsibility. Through these findings, our study illuminates the pivotal role of Industry 4.0 technology in shaping corporate trade credit dynamics.

Suggested Citation

  • Qiao, Penghua & Qiu, Kaizhong & Fung, Anna & Fung, Hung-Gay, 2024. "Unleashing Industry 4.0: Empowering corporate trade credit," Finance Research Letters, Elsevier, vol. 69(PB).
    • Handle: RePEc:eee:finlet:v:69:y:2024:i:pb:s154461232401184x
    DOI: 10.1016/j.frl.2024.106155
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