Effects of Financial Constraints on Supply Chain Financing Choices and Operational Decisions

• 成果类型: Article
• 署名作者: Wu, Anqi; Wu, Qi; Seshadri, Sridhar
• 署名单位: State University System of Florida; Florida International University; University System of Ohio; Case Western Reserve University; University of Illinois System; University of Illinois Urbana-Champaign
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2024.08465
• 发表日期: 2026
• 关键词: Bank credit; inventory; supply chain; interstate bank branching; Quasi-experiment

摘要

Bank credit access allows firms to borrow funds from banks and other financial institutions. Although theories have been developed on how bank financing affects firms' operational decisions, empirical investigations in operations management (OM) literature remain limited. This study examines firms' inventory management strategies in response to the enhanced credit lines from the adoption of interstate bank branching laws, which introduced staggered access to bank credit for operational firms. By merging multiple datasets with credit line information from 10-K SEC filings, we constructed a panel data set covering 1990-2005. Utilizing a difference-in-differences (DID) approach, we find that improved bank credit access leads to a 6% faster inventory turnover, rather than an increase in inventory investment. This outcome appears to stem from short-term increases in capacity investments leveraging their enhanced bank credit and increased use of trade credit, alongside long-term improvements in infrastructure and capital intensity. While these developments are more pronounced for small firms in concentrated markets, their advantage translates into increased competition, negatively impacting the market position and profitability of larger firms. Additionally, in a broader supply chain context, focal firms experience faster inventory turnover when their major customers access more bank credit. The effect is especially prominent for large suppliers in competitive markets, driven by increased sales volumes. This research enhances understanding of the extensive impact of bank credit on operational management and offers insights for policymakers about the diverse effects of bank regulations across different market players and sectors.