The Efficiency of Intellectual Capital Value Creation and Trade Credit Financing
——Evidence from China A-Shares Listed Companies

Wu Jianfeng; Xu Xinze; Cheng Yunying

doi:10.18686/fm.v10i4.14109

The Efficiency of Intellectual Capital Value Creation and Trade Credit Financing ——Evidence from China A-Shares Listed Companies

Wu Jianfeng, Xu Xinze, Cheng Yunying

Abstract

Intellectual capital, as a resource capable of creating value and enhancing corporate competitiveness, has been proven by existing
research to possess financing capabilities from both equity financing and debt financing perspectives. However, no studies have yet focused
on whether it may affect corporate trade credit financing. This paper utilizes a sample of A-share listed companies from 2011 to 2020, and
employs a panel regression model to investigate the impact of the value creation efficiency of intellectual capital on trade credit financing.
The findings suggest that: (1) the overall intellectual capital value creation efficiency in an enterprise facilitates the acquisition of trade credit
financing. Upon further examination of human capital, structural capital and relational capital respectively, it is found that only the value
creation efficiency of structural capital and relational capital exerts a positive impact on trade credit financing, whereas no significant relationship exists between human capital value creation efficiency and trade credit financing; (2) The attention of analysts and shareholdings
of institutional investors have a significant negative regulatory effect on the impact of the overall intellectual capital and relational capital
value creation efficiency on trade credit financing; (3) Further research indicates that the effect of intellectual capital value creation efficiency
on trade credit financing is significantly heterogeneous under the influence of financing constraint degree, property right nature and market
position, and property right nature and market position can play a synergistic role. In other words, the promoting effect of value creation efficiency of overall intellectual capital, human capital, structural capital and relational capital on trade credit financing is more significant in
enterprises with high financing constraints. Relational capital has effects only in state-owned and highly positioned companies, while structural capital is influential only in non-state-owned companies with lower market positioning. This paper contributes empirical evidence to the
factors influencing trade credit financing, enriches the research on the economic consequences of the value creation efficiency of enterprise
intellectual capital, and provides a theoretical foundation for enterprises and stakeholders to enhance their emphasis on intellectual capital, a
critical resource.

Keywords

Intellectual Capital; Trade Credit Financing; Financing Constraints; Alternative Financing

Full Text:

PDF

Included Database

References

[1]Barrot, J. M. (2016). Trade credit and industry dynamics: Evidence from trucking firms. The Journal of Finance, 71(5), 1975–2016.

[2]Cao, P., & Zhang, J. (2021). Paradoxical leadership, dual intellectual capital and organizational dual innovation. Commercial Research, 2021(3), 114–124.

[3]Chen, Z. L. (2017). Customer concentration, industry competition and business credit. Accounting Research, 2017(11), 79–85+97.

[4]Fang, H. X., & Chu, Y. W. (2019). Corporate strategy and trade credit financing. Nankai Business Review, 22(5), 142–154.

[5]Fang, Y., & Niu, H. (2021). What is the effect of institutional investors on asset mispricing: Inhibition or promotion? Jinan Journal

(Philosophy & Social Sciences), 43(6), 107–120.

[6]Fu, C. R. (2015). A study on the impact of VAT reform on value-added efficiency of intellectual capital: Evidence from China’s listed firms from 2007 to 2012. Business and Management Journal, 37(1), 98–108.

[7]Fu, C. R., Chen, J. L., & Wu, W. S. (2019). Intellectual capital information disclosure, product market competition and cost of debt.

Accounting Forum, 18(2), 35–62.

[8]Fu, C. R., Lin, A. X., & Wang, Y. H. (2020). Does intellectual capital information disclosure affect stock price synchronicity? Empirical evidence from China’s high-tech listed companies. Finance and Trade Research, 31(11), 77–96.

[9]Geng, Y. L., Lu, G. H., & Li, X. (2021). Are honest tax-paying enterprises more likely to obtain commercial credit financing? Management Review, 33(3), 269–281.

[10]He, G. S., & Geng, L. P. (2020). The impact of intellectual capital on the performance of listed commercial banks—An empirical

analysis based on VAIC method. Finance Forum, 25(3), 29–37.

[11]Hu, W. J., & Han, L. R. (2020). Does analyst coverage reduce the accounting information risk of listed companies? —Evidence

from Chinese capital market. Management Review, 32(4), 219–230.

[12]Hu, Y. L., & Li, Y. (2021). The influence of configuration effect of intellectual capital on enterprise ecological innovation—An empirical analysis based on FsQCA method. Science & Technology Progress and Policy, 38(10), 95–104.

[13]Hu, Z. L., & Zheng, M. G. (2022). Do corporate strategic differences affect commercial credit financing? —Analysis of the regulatory effects based on scale discrimination and industry characteristics. Management Review, 34(6), 292–302.

[14]Huang, Y. H., Chen, R., & Cui, M. Y. (2021). An empirical study on the impact of financing constraints on R&D investment—

Based on the moderating effect of export. Lanzhou Academic Journal, 2021(9), 34–44.

[15]Jiang, T., & Huo, Y. J. (2022). Dividend motivation discrimination, institutional shareholding and signal transmission. Nankai

Business Review, 2022(5), 1–34.

[16]Ran, Q. H., & Zhou, N. H. (2018). Vertical interlocked executives, institutional investor and value creation of intellectual capital.

Soft Science, 32(12), 50–54.

[17]Su, M. (2018). Intellectual capital added efficiency and the cost of equity capital: A study based on the mediating effect of the CPA

audit opinion report. Commercial Research, 2018(2), 98–107.

[18]Wang, Y., & Zhi, X. Q. (2021). Excess goodwill and trade credit financing. Scientific Decision Making, 2021(10), 1–19.

[19]Wu, C. L., Lin, F. Y., & Liu, J. (2022). Can analysts’ attention restrain market manipulation: Based on identification model of closing price manipulation and high frequency data. South China Finance, 2022(5), 47–58.

[20]Wu, S. R., & Gong, G. M. (2021). Intergenerational succession process and the trade credit financing: Empirical evidence from

Chinese listed family companies. Management Review, 33(7), 261–273.

[21]Yu, B., Wang, W., & Huo, Y. Q. (2021). Media coverage, internal control and business credit financing: A test of the internal and

external collaborative governance. South China Finance, 2021(9), 44–56.

[22]Zheng, C. Y., & Meng, X. H. (2021). Reputation, market competition and commercial credit—Evidence from Chinese listed companies. Dongyue Tribune, 42(1), 98–106+191–192.

[23]Zhou, L., & Xie, W. W. (2019). Intellectual capital and organizational performance: Interaction effect and conduction path. Science

and Technology Management Research, 39(1), 249–255.

DOI: http://dx.doi.org/10.18686/fm.v10i4.14109

Refbacks

There are currently no refbacks.