Description:
While many studies have acknowledged the importance of supply chain finance (SCF) in reducing the financial constraints of small and medium-sized enterprises (SMEs), little research has explored the effectiveness of SCF. This study examines the effect of SCF on financial constraints. More importantly, we examine the impact of information asymmetry, financial development depth, and economic policy uncertainty on the effectiveness of SCF. The empirical analysis shows that SCF can alleviate SMEs’ financial constraints significantly, and this effect is more pronounced for firms with higher information disclosure quality, located in financially developed areas and during periods of high economic policy uncertainty