Biodiversity Risk, Trade Credit snd Sustainable Supply Chains
Hao Liu, Qiang Guo, Chao Liang
Keywords:
Biodiversity risk; Trade credit; Disclosure; Supply chain sustainability; Sustainable development
Abstract:
The global initiative to address biodiversity loss and advance sustainable development has highlighted the importance of corporate biodiversity risk disclosure. Given this context, we construct a corporate biodiversity risk disclosure index to examine the influence of biodiversity risk disclosure on net trade credit. Our findings indicate that corporate biodiversity risk disclosure positively influences net trade credit. Additionally, this positive effect is influenced by the combination of suppliers’ increasing provision of trade credit and customers’ increasing requests for a reduced reliance on trade credit. Our channel analysis indicates that biodiversity risk disclosure significantly enhances net trade credit by improving information transparency and corporate reputation. A cross-sectional test demonstrates that greater social trust and lower credit availability strengthen the incentive effect of biodiversity risk disclosure on net trade credit. We further confirm that leveraging biodiversity risk disclosure for enhanced trade credit is an effective pathway through which to achieve supply chain sustainability. These findings contribute to corporate biodiversity risk governance and sustainable supply chain management.
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 Biodiversity Risk, Trade Credit snd Sustainable Supply Chains [PDF file] [Filesize: 922.69 KB]
 10.7441/joc.2026.01.12
Liu, H., Guo, Q., and Liang, C. (2026). Biodiversity Risk, Trade Credit, and Sustainable Supply Chains. Journal of Comptitiveness (18)1, 269-299. https://doi.org/10.7441/joc.2026.01.12
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