NANJING: Blockchain Information Disclosure and Trade Credit

Blockchain technology is an important part of the infrastructure of the digital economy. We investigate the relationship between blockchain information disclosure and trade credit. Using Python to extract the information from MD&A, the results show that blockchain information disclosure significantly increases an enterprise's trade credit. This effect is stronger for enterprises with weak bargaining power and those located in areas with high social trust. The mechanism of the effect is improved corporate governance and reduced information asymmetry, which reduce default risk. The results are consistent when we consider heterogeneity issues. Our research clarifies the significant role of blockchain technology in the real economy.