The Impact of Supply Chain Transparency on Corporate Financial Risk: A Regression Analysis Approach

Gaohe Cai

doi:10.54254/2754-1169/2025.BJ25399

Advances in Economics, Management and Political SciencesOpen access

The Impact of Supply Chain Transparency on Corporate Financial Risk: A Regression Analysis Approach

Research Article

Open Access

The Impact of Supply Chain Transparency on Corporate Financial Risk: A Regression Analysis Approach

Gaohe Cai ^1*

¹ Boston University

^*Corresponding author: gaohecai@bu.edu

Published on 24 July 2025

AEMPS Vol.205

ISSN (Print): 2754-1177

ISSN (Online): 2754-1169

ISBN (Print): 978-1-80590-293-5

ISBN (Online): 978-1-80590-294-2

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Abstract

With the globalization and the increasing complexity of supply chain management, the financial risks faced by enterprises show the characteristics of diversification and multi-level. Supply chain transparency is considered to be one of the important factors affecting the financial health of enterprises. Through regression analysis, this paper discusses the impact of supply chain transparency on enterprise financial risk. The results show that there is a significant negative correlation between supply chain transparency and enterprise financial risk. Every unit of supply chain transparency increases, the financial risk of the enterprise (measured by the financial leverage ratio) will be reduced by 0.280 units. The analysis shows that the stability of enterprise scale and capital structure also has a significant impact on financial risk. Larger enterprises usually face lower financial risk, while the instability of capital structure will aggravate financial risk. This finding provides important practical enlightenment for enterprises and policy makers, and shows that improving supply chain transparency and optimizing capital structure are effective ways to reduce financial risk.

Keywords:

Supply Chain Transparency, Financial Risk, Regression Analysis, Corporate Governance, Information Asymmetry

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References

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References

[1]. Wagner, S. M., & Bode, C. (2020). How does supply chain transparency influence supply chain risk? Journal of Supply Chain Management, 56(1), 12–28. https: //doi.org/10.1111/jscm.12193

[4]. Zhao, Y., & Lee, C. (2020). The role of transparency in mitigating supply chain financial risks. Asia Pacific Journal of Management, 37(1), 211–229. https: //doi.org/10.1007/s10490-019-09701-4

[6]. Kim, S., & Lee, H. (2020). The role of financial risk management in business sustainability. Finance Research Letters, 33, 101302. https: //doi.org/10.1016/j.frl.2019.101302

[8]. Eisenhardt, K. M. (1989). Agency theory: An assessment and review. Academy of Management Review, 14(1), 57–74. https: //doi.org/10.5465/amr.1989.4279003

[9]. Dewi, S. S., & Rachman, I. (2021). The role of transparency in mitigating supply chain financial risks. Journal of Supply Chain Management, 58(2), 35–48. https: //doi.org/10.1111/jscm.12180

[10]. Arrow, K. J. (1963). Uncertainty and the welfare economics of medical care. The American Economic Review, 53(5), 941–973. https: //doi.org/10.2139/ssrn.2012251

Cite this article

Cai,G. (2025). The Impact of Supply Chain Transparency on Corporate Financial Risk: A Regression Analysis Approach. Advances in Economics, Management and Political Sciences,205,61-70.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

About volume

Volume title: Proceedings of ICEMGD 2025 Symposium: The 4th International Conference on Applied Economics and Policy Studies

ISBN: 978-1-80590-293-5(Print) / 978-1-80590-294-2(Online)

Editor: Florian Marcel Nuţă Nuţă, Xuezheng Qin

Conference website: https://www.icemgd.org/

Conference date: 20 September 2025

Series: Advances in Economics, Management and Political Sciences

Volume number: Vol.205

ISSN: 2754-1169(Print) / 2754-1177(Online)

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