IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v70y2024ics1544612324013400.html

Analysis of the alleviating effect of accounts receivable pledge financing on financing constraints

Author

Listed:
  • Li, Mo
  • Li, Chunyan
  • Duan, Mingchen
  • Hou, Wenjia
  • Pan, Xingchen

Abstract

This paper examines the relationship between accounts receivable pledge financing and corporate financing constraints, utilizing a sample of small and medium-sized enterprises (SMEs) listed on China's Small and Medium Enterprise Board from 2014 to 2022. The findings reveal that accounts receivable pledge financing serves as an effective means to alleviate financing constraints faced by SMEs. Notably, this relief is more pronounced in regions with a higher concentration of small and medium-sized banks and weaker legal institutional environments. Furthermore, for enterprises with political connections, the financing through accounts receivable pledge exhibits an even stronger bailout effect.

Suggested Citation

  • Li, Mo & Li, Chunyan & Duan, Mingchen & Hou, Wenjia & Pan, Xingchen, 2024. "Analysis of the alleviating effect of accounts receivable pledge financing on financing constraints," Finance Research Letters, Elsevier, vol. 70(C).
    • Handle: RePEc:eee:finlet:v:70:y:2024:i:c:s1544612324013400
    DOI: 10.1016/j.frl.2024.106311
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612324013400
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2024.106311?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Liu, Xiaoling & Wu, Yuhui & Zhang, Huan, 2023. "Collateral-based monetary policy and corporate employment: Evidence from Medium-term Lending Facility in China," Journal of Corporate Finance, Elsevier, vol. 78(C).
    2. Guevara, Óscar J. & Riutort, Julio, 2024. "Strengthening secured creditors: Implications on debt financing and investment," Journal of Corporate Finance, Elsevier, vol. 84(C).
    3. Lin, Nan & Liu, Chengyi & Chen, Sicen & Pan, Jianping & Zhang, Pengdong, 2022. "The monitoring role of venture capital on controllers' tunneling: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 82(C).
    4. Wang, Zichen & Zhang, Chang, 2023. "Do shareholder litigations have spillover effects on peer companies from the perspective of financing constraints?," Finance Research Letters, Elsevier, vol. 58(PB).
    5. Marwick, Alex & Hasan, Mostafa Monzur & Luo, Tianpei, 2020. "Organization capital and corporate cash holdings," International Review of Financial Analysis, Elsevier, vol. 68(C).
    6. Li, Chengming & Wang, Yilin & Zhou, Zhihan & Wang, Zeyu & Mardani, Abbas, 2023. "Digital finance and enterprise financing constraints: Structural characteristics and mechanism identification," Journal of Business Research, Elsevier, vol. 165(C).
    7. Yu, Jian & Peng, Fanjia & Shi, Xunpeng & Yang, Longjian, 2022. "Impact of credit guarantee on firm performance: Evidence from China’s SMEs," Economic Analysis and Policy, Elsevier, vol. 75(C), pages 624-636.
    8. Guo, Kai & Ke, Bin & Tang, Song, 2023. "Private firms' financial constraints and share pledging by controlling shareholders of publicly listed firms: Evidence from China," Journal of Corporate Finance, Elsevier, vol. 80(C).
    9. Liu, Bai & Ju, Tao & Chan, Hing Kai, 2022. "The diverse impact of heterogeneous customer characteristics on supply chain finance: Empirical evidence from Chinese factoring," International Journal of Production Economics, Elsevier, vol. 243(C).
    10. Lou, Zhaohui & Xie, Qizhuo & Shen, Jim Huangnan & Lee, Chien-Chiang, 2024. "Does Supply Chain Finance (SCF) alleviate funding constraints of SMEs? Evidence from China," Research in International Business and Finance, Elsevier, vol. 67(PA).
    11. Tian, Zhongliang & Tang, Ruoyuan & Liu, Wenhe & Qi, Yuan, 2024. "Controlling shareholder's equity pledge and corporate financialization," Finance Research Letters, Elsevier, vol. 60(C).
    12. Pengpeng Yue & Aslihan Gizem Korkmaz & Zhichao Yin & Haigang Zhou, 2023. "Liquidity constraints and family labor participation," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 28(1), pages 53-74, January.
    13. Gu, Haoran & Yang, Shenggang & Xu, Zhaoyi & Cheng, Cheng, 2023. "Supply chain finance, green innovation, and productivity: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 78(C).
    14. Zhang, Yue & Ge, Mengshuai & Yang, Jiaju & Liu, Cuiying & Chen, Xi, 2023. "Controlling shareholders' equity pledge, digital finance, and corporate digital transformation," International Review of Financial Analysis, Elsevier, vol. 90(C).
    15. Fernandez, Viviana, 2022. "Environmental management: Implications for business performance, innovation, and financing," Technological Forecasting and Social Change, Elsevier, vol. 182(C).
    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. Tian, Zhongliang & Tang, Ruoyuan & Liu, Wenhe & Qi, Yuan, 2024. "Controlling shareholder's equity pledge and corporate financialization," Finance Research Letters, Elsevier, vol. 60(C).
    2. Guo, Qin & Zhao, Yuanping, 2025. "The influence mechanism of controlling shareholders' equity pledges on corporate risk-taking," Finance Research Letters, Elsevier, vol. 82(C).
    3. Zuo, Yu & Bai, Tao, 2024. "Major shareholder equity pledges and the risk of stock price crash based on external audit quality," Finance Research Letters, Elsevier, vol. 63(C).
    4. Yue, Sishi & Yang, Mo & Dong, Dayong, 2024. "Do enterprises adopting digital finance exhibit higher values? Based on textual analysis," The North American Journal of Economics and Finance, Elsevier, vol. 73(C).
    5. Wang, Kai & Ding, Ning & Wang, Chenbo, 2025. "Supply chain finance and outward foreign direct investment," Research in International Business and Finance, Elsevier, vol. 73(PA).
    6. Fengzuo Li & Pengjie Na & Salman Mahmood & Xiaolan Wang & Tanveer Ahmed, 2025. "State Ownership and the Sustainable Development of Private Enterprises: Exploring the Role of State Ownership Participation," SAGE Open, , vol. 15(1), pages 21582440251, February.
    7. Ren, Haibo & Xu, Yueping & Wu, Jiangning, 2024. "Controlling shareholders' stock pledges and stock price crash risks," Finance Research Letters, Elsevier, vol. 68(C).
    8. Song, Tao & Tian, Mohan & Li, Dongwei, 2025. "The development of digital finance, equity pledge behavior, and the quality of information disclosure," Finance Research Letters, Elsevier, vol. 86(PA).
    9. Bai, Hengrui & Huang, Lingyu & Wang, Ziqi, 2024. "Supply chain financing, digital financial inclusion and enterprise innovation: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 91(C).
    10. Ying Lu & Sha Sun & Mingming Zhang & Zikun Yang, 2024. "RETRACTED ARTICLE: Moving Towards Sustainable Development: Can Supply Chain Finance Promote Corporate Green Innovation?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 13001-13026, September.
    11. Ji, Tuo & Cai, Dong, 2024. "Major shareholder equity pledge and litigation risk," Finance Research Letters, Elsevier, vol. 65(C).
    12. Chen, Shaojian, 2026. "Digitalization and cross-regional investments: Evidence from parent-subsidiaries in China," International Review of Financial Analysis, Elsevier, vol. 109(C).
    13. Ding, Zhaozeng, 2025. "Controlling shareholder equity pledges and corporate litigation: The role of organization participation in corporate governance," Finance Research Letters, Elsevier, vol. 86(PA).
    14. Yang, Yuhan & Zhang, Chong & Liu, Baoliu & Huang, Yujie & Tai, Yafei, 2024. "Mystery of special government subsidies: How does digital transformation promote enterprise innovation and development?," Economic Analysis and Policy, Elsevier, vol. 83(C), pages 1-16.
    15. Li, Qinyang & Li, Mingrui & Li, Mengru & Li, Tao, 2025. "Digital ripples: The impact of customers' digital transformation on the financing constraints of suppliers," International Review of Financial Analysis, Elsevier, vol. 105(C).
    16. Li, Shuang & Xie, Nan, 2025. "The impact of digital finance on firms' digital Transformation: Mechanism analysis based on enterprise financing," International Review of Economics & Finance, Elsevier, vol. 101(C).
    17. Bu, Jun & Chang, Yanfeng & Fei, Tianlun & Li, Xueying, 2025. "It is a marathon, not a sprint: The impact of supply chain finance on firms’ short-term debt for long-term investments," Pacific-Basin Finance Journal, Elsevier, vol. 93(C).
    18. Ji, Baolong, 2025. "Supply chain finance and corporate persistent innovation—from the perspective of dynamic capabilities enhancement," International Review of Economics & Finance, Elsevier, vol. 103(C).
    19. Zhou, Yuanxiang & Liu, Huayan & Chen, Chan & Ma, Yingqi, 2025. "The impact of digital inclusive finance on green economic efficiency: Pathways to inclusive sustainability," Research in International Business and Finance, Elsevier, vol. 76(C).
    20. Dongling WANG & Syed Ghulam Meran SHAH & Lucian IoneI CIOCA & Jaffar ABBAS, 2025. "Vigorous Boards and Cash Hoarding: Deriving Moderating Effects of Green Innovation, Agency Costs, and Independent Directors via Moment Quantile Regression," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(1), pages 146-164, April.

    More about this item

    Keywords

    ;
    ;
    ;

    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:eee:finlet:v:70:y:2024:i:c:s1544612324013400. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    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.