How do financial leverage and supply chain finance influence firm performance? Evidence from construction sector

Bui, T.

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Uncertain Supply Chain Management

ISSN 2291-6830 (Online) - ISSN 2291-6822 (Print) Quarterly Publication Volume 8 Issue 2 pp. 285-290 , 2020

How do financial leverage and supply chain finance influence firm performance? Evidence from construction sector Pages 285-290 Download PDF

Authors: Toan Ngoc Bui

DOI: 10.5267/j.uscm.2019.12.003

Keywords: Cash conversion cycle, Construction sector, Financial leverage, Performance, Vietnam

Abstract: This paper investigates the impact of financial leverage and supply chain finance on firm performance of Vietnamese construction sector. Although there is a big gap in the literature needed to be filled, little empirical evidence can be found on this interesting topic. Therefore, the results are essential for Vietnamese firms, particularly those in construction industry. By adopting the generalized method of moment (GMM), the results reveal the significant influence of financial leverage and supply chain finance on the performance of construction firms. In particular, firm performance (FP) is more influenced by financial leverage (FL) than supply chain finance (SCF). The findings also show that supply chain finance plays a key role in enhancing firm performance. Meanwhile, more debts and their inefficient use exert a negative impact on firm performance, which is an unprecedented finding of this study.

How to cite this paper

 Bui, T. (2020). How do financial leverage and supply chain finance influence firm performance? Evidence from construction sector.Uncertain Supply Chain Management, 8(2), 285-290.

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