IDEAS home Printed from https://ideas.repec.org/a/eee/riibaf/v84y2026ics0275531926000346.html

Digital innovation and the cost-of-equity capital: Evidence from the supply chain

Author

Listed:
  • Yan, Jiayi
  • Tang, Zishen
  • Yang, Kai
  • Li, Donghui
  • Fan, Xinyue

Abstract

We investigate how digital-innovation spillovers along the supply chain affect equity capital costs using a sample of Chinese listed A-share companies from 2009 to 2021. Empirical results indicate that focal firms’ digital innovation reduces their supply chain partners’ equity costs. This effect is more pronounced when focal firms are nonstate-owned and have less bargaining power in the supply chain. The key mechanisms include increased digital-innovation output and enhanced firm value for supply chain partners. Additionally, focal firms’ strategic information disclosure and technical expertise in management strengthen the cost-reducing effect, while default risk weakens it. This spillover effect is further amplified when supply chain partners have higher levels of research and development human capital. Our results remain robust after accounting for various robustness checks.

Suggested Citation

  • Yan, Jiayi & Tang, Zishen & Yang, Kai & Li, Donghui & Fan, Xinyue, 2026. "Digital innovation and the cost-of-equity capital: Evidence from the supply chain," Research in International Business and Finance, Elsevier, vol. 84(C).
    • Handle: RePEc:eee:riibaf:v:84:y:2026:i:c:s0275531926000346
    DOI: 10.1016/j.ribaf.2026.103307
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0275531926000346
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ribaf.2026.103307?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.

    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:riibaf:v:84:y:2026:i:c:s0275531926000346. 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/ribaf .

    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.