How does top management team recomposition affect corporate trade credit financing

IF 7.5 1区经济学 Q1 BUSINESS, FINANCE

International Review of Financial Analysis Pub Date : 2025-03-11 DOI:10.1016/j.irfa.2025.104108

Shuai Xu , Suge Zhang , Chen Cheng

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引用次数: 0

Abstract

We empirically examine the impact of top management team (TMT) recomposition on corporate trade credit financing. Utilizing a sample of A-share listed firms in China from 2009 to 2022, we discover that TMT recomposition exhibits a negative and significant correlation with corporate trade credit financing. Our finding remains robust after addressing endogeneity concerns and conducting rigorous tests for verification. This effect is particularly pronounced among firms with younger management teams and core executive turnover. Mechanism tests reveal that a restructured TMT may erode credit providers' trust by heightening operational risks and diminishing the quality of disclosed information. This underscores the importance of reducing operational risks and enhancing transparency in information as crucial pathways for securing trade credit financing. This study aids in comprehending the significance of a steadfast top management team and its internal mechanisms, offering clear implications for enhancing corporate trade credit financing.

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我们实证研究了高层管理团队（TMT）重组对企业贸易信贷融资的影响。利用 2009 年至 2022 年中国 A 股上市公司的样本，我们发现 TMT 重组与企业贸易信贷融资呈现出显著的负相关关系。在解决了内生性问题并进行了严格的验证测试后，我们的发现依然稳健。这种效应在管理团队年轻化和核心高管更替的企业中尤为明显。机制测试表明，重组后的 TMT 可能会提高运营风险并降低披露信息的质量，从而削弱信贷提供者的信任。这强调了降低运营风险和提高信息透明度的重要性，是确保贸易信贷融资的重要途径。本研究有助于理解坚定的高层管理团队及其内部机制的重要性，为加强企业贸易信贷融资提供了明确的启示。

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来源期刊

International Review of Financial Analysis BUSINESS, FINANCE-

CiteScore

10.30

自引率

9.80%

发文量

366

期刊介绍： The International Review of Financial Analysis (IRFA) is an impartial refereed journal designed to serve as a platform for high-quality financial research. It welcomes a diverse range of financial research topics and maintains an unbiased selection process. While not limited to U.S.-centric subjects, IRFA, as its title suggests, is open to valuable research contributions from around the world.