The Impact of Trade Credit Financing on Goodwill Impairment Risk in the Context of Digital Transformation: Evidence from China's Growth Enterprise Market
Abstract
whether trade credit financing affects goodwill impairment risk has become an important issue. Using Chinese Growth Enterprise Market
listed companies from 2012 to 2022 as the research sample, this paper examines the impact of trade credit financing on goodwill impairment
risk and further investigates the roles of digital transformation and ownership structure. The results show that a higher level of trade credit
financing significantly increases the probability of subsequent goodwill impairment. Digital transformation strengthens this positive relationship. Moreover, the positive association between trade credit financing and goodwill impairment is more pronounced among non-state-owned
enterprises than among state-owned enterprises. The main conclusions remain valid after a series of robustness tests. These findings indicate
that although trade credit can alleviate short-term financing constraints, excessive reliance on it may increase liquidity pressure and M&A
decision-making risks, thereby raising the probability of goodwill impairment. Enterprises should reasonably control the scale of trade credit
financing, improve digital governance and enhance M&A valuation quality. Regulators should strengthen risk monitoring of firms with both
high goodwill and heavy reliance on trade credit and pay attention to differences in ownership structure.
Keywords
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DOI: http://dx.doi.org/10.70711/memf.v3i11.10263
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