The Negative Impact of Supply Chain Finance on Stock Price Synchronicity

DOI

10.2991/978-94-6239-672-2_11How to use a DOI?

Keywords

supply chain finance; stock price synchronicity; information environment; financing constraints; media sentiment

Abstract

We investigate whether supply chain finance (SCF) improves the information environment embedded in stock prices. By employing a multi-dimensional fixed effect approach to analyze data of Chinese A-share companies from 2009 to 2023, this study demonstrates that involvement in SCF exerts a substantial mitigating effect on stock price synchronicity (SYN), suggesting that capital markets incorporate more firm-specific information. Mechanism tests indicate that SCF relaxes financing frictions, increases external monitoring, and improves media sentiment, which jointly strengthens information production. Heterogeneity analyses further show that this value-creation effect is amplified in non-SOEs, large firms, and firms operating in concentrated supply chains. Overall, this study reveals that SCF is not merely a transactional innovation between upstream and downstream enterprises. Instead, it represents a financing and information infrastructure that enhances resource allocation efficiency and market-based governance. Our findings enrich the corporate finance literature by connecting supply chain banking solutions to capital market information content, and highlight that policy support for SCF has both micro-financial and capital-market welfare implications.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Yifei Cheng
PY  - 2026
DA  - 2026/05/12
TI  - The Negative Impact of Supply Chain Finance on Stock Price Synchronicity
BT  - Proceedings of the 2026 3rd International Conference on Applied Economics, Management Science and Social Development (AEMSS 2026)
PB  - Atlantis Press
SP  - 105
EP  - 113
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-672-2_11
DO  - 10.2991/978-94-6239-672-2_11
ID  - Cheng2026
ER  -