How does digital supply chain finance affect the fluctuation of corporate cash flow? Based on panel data analysis of industry heterogeneity

Based on panel data of Chinese listed companies from 2011 to 2023, this paper systematically analyzes the impact and mechanisms of digital supply chain finance on corporate cash flow volatility. Empirical results indicate that digital supply chain finance significantly reduces corporate cash flow volatility, and this conclusion remains robust against various rigorous and endogeneity tests. Mechanism analysis shows that digital supply chain finance indirectly decreases cash flow volatility by reducing the proportion of corporate inventory. Further industry heterogeneity analysis indicates that digital supply chain finance exerts a more pronounced suppressing effect on corporate cash flow volatility in technology-intensive and labor-intensive industries, as well as in high-technology industries and the manufacturing sector. This study provides empirical evidence for policymakers, financial institutions, and enterprises to optimize supply chain financing and cash flow management in the context of digitalization.