Supply Chain Finance And Dynamic Adjustment Of Cash Holdings Of Core Enterprises

Given the impact of external uncertainties such as COVID-19 on China’s economic development,supply chain finance led by core enterprises has played an important role in easing financing constraints of Small and Medium-sized Enterprises(SMEs)and helping them resume work and production.Supply chain finance can not only help SMEs solve financing problems,but also help core enterprises improve their comprehensive strength,and the cash holding level and adjustment ability is an important part of the comprehensive strength of enterprises.At present,there are few literatures on the impact of supply chain finance on the dynamic adjustment of cash holdings from the perspective of core enterprises.Core enterprises are the organizers,managers and coordinators in the whole supply chain,and have absolute leadership and control over the upstream and downstream SMEs in the supply chain.Cash holding is the source on which enterprises rely for survival and development,as well as one of the important manifestations of the real economy.Studying the influence of supply chain finance on the dynamic adjustment of core enterprises’ cash holdings is also an important window to test the effectiveness of supply chain finance in serving the real economy.This paper takes the A-share listed companies from 2010 to 2020 as the initial research sample,and conducts a series of screening according to the essence of supply chain finance business to obtain the final research sample.According to the dynamic adjustment model,this paper mainly studies the influence of core enterprises’ supply chain finance business on the dynamic adjustment speed of their cash holdings.Firstly,the target cash holding level is estimated by System GMM method.Secondly,according to the theory of supply chain finance and enterprise cash holding theory,including trade-off theory,priority financing theory and agency theory,in the benchmark dynamic adjustment model to join the supply chain financial variables,continue to use the System GMM method to study the impact of supply chain finance on the dynamic adjustment speed of cash holdings of core enterprises.At the same time,before and after this main research,this paper uses fixed effect model to study the influence of supply chain finance on cash holding level and cash holding deviation degree of core enterprises,and tries to construct a comprehensive research system of the influence of supply chain finance on cash holding decision of core enterprises.Finally,according to the nature of property rights and regional differences,the impact of core enterprises’ supply chain finance business on the dynamic adjustment speed of cash holdings is tested in groups to explore the impact of core enterprises’ property rights and regional factors.According to the empirical test results of this paper and the above theoretical analysis,the following conclusions are finally drawn:Firstly,core enterprises can improve their cash holding level by carrying out supply chain finance business;Secondly,core enterprises can speed up the dynamic adjustment of cash holdings by developing supply chain finance business.Thirdly,the core enterprises’ supply chain finance business reduces the deviation degree of their cash holdings.Fourthly,state-owned core enterprises can accelerate the dynamic adjustment speed of their cash holdings by developing supply chain finance business more than non-state-owned enterprises.Fifthly,compared with the eastern region,core enterprises in the western region play a greater role in accelerating the dynamic adjustment of their cash holdings by conducting supply chain finance business,but the adjustment effect is not obvious in the central region.Therefore,on the whole,core enterprises’ supply chain finance business can optimize their overall decision-making behavior of cash holding and have a positive impact on their production and operation activities.This paper creatively studies the dynamic adjustment of cash holdings from the perspective of core enterprises of supply chain finance,enriches the research on the economic consequences of core enterprises carrying out supply chain finance business,confirms the positive significance of enterprises carrying out supply chain finance business,and helps to encourage listed companies as core enterprises to actively carry out supply chain finance business;At the same time,in view of COVID-19 outbreak and other external shocks bring huge cash flow pressure to enterprises,this study expands the research on the factors that influence the dynamic adjustment of cash holdings in enterprises,and helps to understand and further optimize the comprehensive decision-making behavior of cash holdings of core enterprises from the perspective of supply chain finance,and improves the market competitiveness of core enterprises.