IDEAS home Printed from https://ideas.repec.org/a/eee/pacfin/v92y2025ics0927538x25001325.html
   My bibliography  Save this article

Shift in corporate financing strategies: The impact of targeted poverty alleviation on trade credit

Author

Listed:
  • Zhou, Jing
  • Yang, Ying
  • Zhang, Fang
  • Jiu, Lili

Abstract

This study examines the impact of corporate targeted poverty alleviation (TPA) initiatives on trade credit financing. We find that firms engaging in TPA activities experience a significant reduction in their reliance on trade credit. This effect is more pronounced for firms with higher operational risk, those located in regions with lower financial development, and those participating in TPA through industrial development projects. Mechanism analysis reveals that TPA participation enhances firms' access to bank loans and lowers financing cost, thereby reducing their dependence on trade credit. Our study contributes to the literature by demonstrating how government-initiated corporate social engagement shapes firms' financing strategies. It also provides practical insights for policymakers and firms, highlighting the government role in addressing the challenges in trade credit markets.

Suggested Citation

  • Zhou, Jing & Yang, Ying & Zhang, Fang & Jiu, Lili, 2025. "Shift in corporate financing strategies: The impact of targeted poverty alleviation on trade credit," Pacific-Basin Finance Journal, Elsevier, vol. 92(C).
    • Handle: RePEc:eee:pacfin:v:92:y:2025:i:c:s0927538x25001325
    DOI: 10.1016/j.pacfin.2025.102795
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0927538X25001325
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.pacfin.2025.102795?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 search for a different version of it.

    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:pacfin:v:92:y:2025:i:c:s0927538x25001325. 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.

    We have no bibliographic references for this item. You can help adding them by using 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/pacfin .

    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.