Confucian Culture,Internal Control And Enterprise Trade Credit Financing

The adverse selection and moral hazard problems brought about by information asymmetry have led to the unbalanced development of the credit market.More and more companies are facing serious financial constraints.The development of my country’s financial market is not yet perfect.Under such circumstances,commercial trade credit financing based on the supply and marketing relationship between enterprises has received extensive attention and application.In the literature explaining the influencing factors of commercial trade credit financing,many scholars have studied it from the perspective of external environmental factors(monetary policy,financial market,etc.)There are few studies on perspective.As the core of Chinese traditional culture,Confucian culture is the most important cultural element in China.As an informal system,its influence on social and economic development and corporate behavior has received extensive attention.The theory of informal institutions points out that informal institutions such as religion and culture can affect individual behavior by shaping the general trust among social individuals,and commercial trade credit is based on trust among enterprises.Therefore,based on informal institutional theory,this paper explores the influence of Confucian culture on corporate commercial trade credit financing through literature analysis and empirical research.This paper first sorts out the current research status of Confucian culture,commercial trade credit financing,and the relationship between informal institutions and commercial trade credit financing through bibliometrics and review.Based on Hofstede’s cultural theory,informal system theory,social norm theory,information asymmetry theory and signal theory,combined with theoretical analysis and logical deduction to construct the theoretical model of this paper,and analyze the internal control in the relationship between Confucian culture and corporate business trade credit financing The mediating role of property rights and the moderating role of the nature of property rights and the degree of opening to the outside world.The empirical research takes the data of Shanghai and Shenzhen A-share listed companies from 2010 to 2021 as the research object,and examines the influence of Confucian culture on corporate business trade credit financing.The results show that: Confucian culture can have a positive impact on corporate business trade credit financing;It plays an intermediary role in the impact on corporate commercial trade credit financing;the nature of property rights plays a positive role in regulating the relationship between Confucian culture and corporate commercial trade credit financing,that is,compared with non-state-owned enterprises,Confucian culture has a positive effect on corporate commercial trade credit financing in state-owned enterprises.The impact of the degree of openness is greater;the degree of openness to the outside world has a negative moderating effect on the relationship between Confucian culture and business trade credit financing,that is,compared with enterprises in areas with a high degree of openness to the outside world,Confucian culture has a positive effect on enterprises in areas with a low degree of openness to the outside world.Commercial trade credit financing has a greater impact.Further research found that Confucian culture’s role in promoting corporate trade credit financing is more significant in regions with weaker market competition and lower social trust.In addition,this paper conducts a robustness test on the main effect by replacing the explanatory variable measurement,the explained variable measurement,and controlling the interaction between the year and the industry.The propensity score matching,Heckman two-stage and instrumental variable method are used to deal with endogenous problems,and the obtained The results enhance the reliability of the empirical results.This paper explores the profound connotation of Confucian culture.By combining Hofstede’s cultural theory and analyzing the characteristics of Confucian culture,it studies its impact on corporate business trade credit financing and expands the research on Confucian culture.At the same time,it also expands the relevant literature on the influencing factors of commercial trade credit financing from the perspective of informal institutions.The conclusion of this paper shows that listed companies should fully pay attention to and utilize my country’s characteristic cultural resources,combine the local institutional environment,and give full play to the advantages of traditional culture,so as to obtain more commercial trade credit financing and alleviate their own financing pressure.