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Recent Patents on Engineering

Author(s): Xiaowen Li and Jun Chen*

DOI: 10.2174/0118722121232518231006111435

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An Empirical Study on the Impact of Supply Chain Finance on the Performance of the Automobile Industry in the Post-covid-19 Era

Article ID: e111023222034

  • * (Excluding Mailing and Handling)

Abstract

Background: In recent years, trade on credit has become increasingly common around the world, exposing companies in the supply chain to significantly increased financial risk due to extended billing periods. As an innovative financing model, supply chain finance (SCF) has received a lot of attention.

Objective: The goal of this work is to examine the impact of supply chain finance on the performance of the automobile industry in the post-covid-19 era.

Methods: After an in-depth understanding of the relevant theoretical literature, two models of inquiry are established in this paper, and the relevant data are collected from the CSMAR database for a sample of some enterprises in the automotive industry in the listed market, followed by an empirical analysis using the Stata 16.0. Then, the fixed effects model (FEM) and difference-indifference model (DID) are used to test the hypothesis.

Results: The results show a significant impact of supply chain finance on the performance of automobile firms. It is effective in improving the flow of funds and contributes to the performance of enterprises in the automotive industry.

Conclusion: In the context of the pandemic, supply chain finance can effectively help enterprises reduce the risk of bankruptcy due to capital rupture and provide a guarantee for the sustainable development of automobile industry enterprises.

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