How does corporate performance affect supply chain finance? Evidence from logistics sector

Abstract

The paper investigates the impact of corporate performance on supply chain finance with the data collected from logistics sector in Vietnam. Particularly, supply chain finance is measured by cash conversion cycle (CCC). By using the generalized method of moment (GMM), the results show that corporate performance (CP) exerts a negative impact on cash conversion cycle (CCC). Alternatively, corporate performance positively affects supply chain finance, which is an interesting finding of this paper. Further, supply chain finance is also significantly influenced by some control variables, namely capital structure (CS), firm size (FS) and firm growth (FG). The results are essential for the management of supply chain, especially those working in logistics sector.