Can supply chain finance promote enterprise cross-region investment? ——evidence from China

This study examines the impact of supply chain finance (SCF) on cross-region investment (CRI) among Chinese listed companies from 2007 to 2022. The results indicate that SCF can significantly promote enterprises’ CRI. Reducing internal transaction costs is the plausible channel that allows the SCF to promote enterprises’ CRI. The positive effect of SCF on enterprises’ CRI is more pronounced in state-owned enterprises and large-scale firms. These findings contribute to the understanding of SCF’s role in shaping firms’ investment strategies and offer valuable insights for both researchers and practitioners seeking to leverage SCF for market expansion.