Does Supply Chain Finance Create More Jobs? Evidence From China

ABSTRACT Based on the empirical data of China's A‐share listed firms from 2011 to 2021, we find that supply chain finance (SCF) significantly increases corporate employment by fostering innovation within organizations, increasing investments in long‐term assets, and stimulating sales growth. The positive effect is stronger in firms in digitally advanced regions, facing high supply chain risk, and led by management teams with financial backgrounds or low levels of myopia. Furthermore, SCF mainly enhances employment of highly skilled individuals. Reasonable employment expansion resulting from SCF is conducive to the sustainable development of firms without creating labor redundancy.