Author(s)

Nicolas Diodji Mamadou Faye¹, El Hadji Omar Ndao², Kokou W. Tozo³, Mouanda Gilhaimé⁴, Mohammed Abdul-Latif⁵

¹Direction des Financements et des Partenariats Public-Privé, Ministère de l’Economie, du Plan et de la Coopération, Dakar, Sénégal.
²School of Economics Sciences, Management and Trade, Universite du Sine-Saloum Elhadji Ibrahima NIASS, Fatick, Sénégal.
³Institute of New Structural Economics, Peking University, Beijing, China.
⁴School of Economics, Henan University, Kaifeng, China.
⁵Newcastle Business School, University of Newcastle, Newcastle, Australia.

This paper examines the incidence of firm value chain power on its exterior financing liabilities, bank loan financing and firm performance. Taking data from the China Stock Market and Accounting Research (CSMAR), this study has gathered cross-sectional data of 13,653 firms from 2006 to 2016. The results indicate that industries with higher power in the value chain carry a lower volume of financing liabilities. The results also show that companies with greater firm power use lower financing liabilities and aim to utilize non-cost commercial credit for financing. The study also reveals that creditors from the banks sector give more hand to large firms, and the role of firm power has merely been accepted by banks in big-scale and constant companies. Additionally, firm power has no considerable impact on the maturity of bank loans. After last, this study moreover unveils the economic outcomes of the effect of firm value chain power across the differences in firm financial performance. Low-scale, great-growth firms with bigger firm power get best financial performance.

Company Value Chain Power, Industry Chain, Financial Liabilities, Bank Loan Financing, Firm Performance

Faye, N. , Ndao, E. , Tozo, K. , Gilhaimé, M. and Abdul-Latif, M. (2023) Impact of Firm Power on Debt Structure, Bank Loan Financing and Corporate Performance in China. Technology and Investment, 14, 63-87. doi: 10.4236/ti.2023.142004.