Abstract：Trade credit is an important means of short-term financing for firms all over the world， especially under the COVID-19 epidemic， become the key to the firm's survival and good development. FSSCs are strongly supported by our government and the number of them is growing rapidly， and existing research shows that they are conducive to improving the internal control and information disclosure quality， further alleviating the information asymmetry problem. Therefore， would FSSCs influence corporate trade credit？ What is the logic and specific institutional channels behind the theory？ What is the economic consequences？This paper， using listed firms' data of China's A-share markets from 2003 to 2018， finds that， FSSCs can significantly increase corporate trade credit which is realized by two mechanisms of improving the internal control quality and reducing the supplier concentration. Furthermore， the effect of FSSCs on corporate trade credit is mainly concentrated in the sub-sample of non-state-owned enterprises， low institutional investor holding， high economic policy uncertainty and tight monetary policy period， etc. Economic consequences study finds that， FSSCs can ultimately increase the investment level and improve the operating performance by increasing corporate trade credit.
2021, Vol. 60 
