How does patient capital empower supply chains? An empirical investigation of spillover effects from government-guided funds

This paper examines the impact of patient capital investment on alleviating the financing constraints of upstream and downstream firms in the supply chain. The findings reveal that patient capital investment generates a positive spillover effect within the supply chain, alleviating the financing constraints of core suppliers and customers. This spillover effect is more pronounced when the interdependency between supply chain firms is stronger and when the financing capacity of these key partners is weaker. Mechanism analysis indicates that patient capital operates through two channels: capital cost effect (improving accounts receivable turnover efficiency of suppliers) and credit expansion effect (increasing the proportion of credit loans for customers). Further analysis shows that this supply chain spillover effect significantly enhances the investment efficiency and innovation level of major suppliers and customers. The findings provide theoretical and empirical insights for policies aimed at fostering patient capital, promoting industrial and supply chain optimization and upgrading, and building a modern industrial system.