Research on the Relationship between Cash Holding and Business Credit in the View of Supply Chain

Abstract

This paper analyzes the relationship between corporate cash holdings and commercial credit from the perspective of supply chain, selects 1162 listed companies from 2017 to 2021 as sample objects, analyzes the impact of corporate commercial credit on cash holdings, and discusses the regulatory role of regional financial development level on this impact. The final result shows that there is a significant positive correlation between business payables, i.e. business credit obtained by enterprises, and cash holdings; There is a significant negative correlation between enterprise receivables, i.e. business credit provided by enterprises, and enterprise cash holdings.