Supply Chain Digitalization and Firms' Access to Bank Loans: Evidence From China

Using a quasi-natural experiment of Supply Chain Innovation and Application Pilot program, this study reveals that supply chain digitalization significantly increases firms' access to bank loans. Supply chain digitalization promotes firms' access to bank loans by alleviating information asymmetry, reducing financial risk and facilitating the development of supply chain finance. The impact of supply chain digitalization on bank loans is stronger among firms with higher industry uncertainty, lower proportion of independent directors and higher digital transformation levels. Moreover, the study shows that supply chain digitalization significantly reduces the cost of firms' bank loans and helps companies obtain more credit loans instead of mortgage loans. The economic consequence analysis shows that supply chain digitalization can ultimately improve firms' market value. Our findings provide references for building the modern supply chain system.