Media Reports And Trade Credit Financing

Trade credit financing,as an important source of financing for enterprises,plays an important role in promoting the development of enterprises and the whole national economy.Therefore,the factors which impact trade credit financing inevitably become a hot research topic in the field of corporate finance.In fact,domestic and foreign scholars have studied the factors that influence trade credit financing from the aspects of external factors and internal factors,and have obtained rich research results.But unfortunately,whether and how media reports would affect the trade credit financing is still unknown.In fact,existing research has confirmed that media coverage can have an impact on behavioral decisions of business stakeholders,investors,banks,analysts,certified public accountants,and so on.While,trading partners are important stakeholders of enterprises,Its behavioral decision-making is bound to be impacted by the media coverage of the enterprise.the enterprise's trade credit financing is actually the trading partner's trade credit supply.Therefore,the impact of media coverage on corporate trade credit financing is actually the impact of media coverage on its trading partners' credit decision.This paper first combs the literature about media reports and commercial credit financing,and puts forward the research topic of this paper through the literature review.On this basis,The hypothesis of this paper is put forward through combining information asymmetry theory and signaling theory with the research contents of this paper.Then,choosing listed companies in Shenzhen Stock Market from 2012 to 2014 as the original sample,the final research samples of this article were determined after excluding some listed companies which did not match the purpose of the study.Then,taking into account the purpose of this study,the author determine the trade credit financing(the explanatory variables of this article)measurement considering both the enterprise suppliers and customers(business upstream and downstream trading partners).And then test the relationship between trade credit financing scale relatively with positive reports and negative reports.In order to test whether the credibility of the media will be effective,this paper further divides the media reports into "official state background" and "non-state official background" to examine the difference of the impact of media reports on the scale of commercial credit financing.In order to make the research results more reliable,this paper also carries out the robustness test.The results of this studyshow that the number of positive reports has a significant positive impact on the commercial credit financing scale of the enterprises,which can enhance the commercial credit financing ability of the enterprises.The negative reports of the media have an significantly negative impact on commercial credit financing scale,which will weaken the ability of the enterprise's commercial credit financing.Second,Compared with "non-state official background" media,the "state official background" media have more significant role in acquiring trade credit.Finally,according to the conclusion of this paper,the possible revelation of this paper and the relevant policy suggestions are put forward.For a variety of reasons,there are still some shortcomings in this paper,so at the end of this article,the author also put forward some aspects which future research can improve.