{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,7,6]],"date-time":"2026-07-06T11:15:29Z","timestamp":1783336529663,"version":"3.54.6"},"reference-count":87,"publisher":"Institute for Operations Research and the Management Sciences (INFORMS)","issue":"7","content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":["Management Science"],"published-print":{"date-parts":[[2026,7]]},"abstract":"<jats:p>Bank credit access allows firms to borrow funds from banks and other financial institutions. Although theories have been developed on how bank financing affects firms\u2019 operational decisions, empirical investigations in operations management (OM) literature remain limited. This study examines firms\u2019 inventory management strategies in response to the enhanced credit lines from the adoption of interstate bank branching laws, which introduced staggered access to bank credit for operational firms. By merging multiple datasets with credit line information from 10-K SEC filings, we constructed a panel data set covering 1990\u20132005. Utilizing a difference-in-differences (DID) approach, we find that improved bank credit access leads to a 6% faster inventory turnover, rather than an increase in inventory investment. This outcome appears to stem from short-term increases in capacity investments leveraging their enhanced bank credit and increased use of trade credit, alongside long-term improvements in infrastructure and capital intensity. While these developments are more pronounced for small firms in concentrated markets, their advantage translates into increased competition, negatively impacting the market position and profitability of larger firms. Additionally, in a broader supply chain context, focal firms experience faster inventory turnover when their major customers access more bank credit. The effect is especially prominent for large suppliers in competitive markets, driven by increased sales volumes. This research enhances understanding of the extensive impact of bank credit on operational management and offers insights for policymakers about the diverse effects of bank regulations across different market players and sectors.<\/jats:p>\n                  <jats:p>This paper was accepted by J. George Shanthikumar, data science.<\/jats:p>\n                  <jats:p>Supplemental Material: The online appendix and data files are available at https:\/\/doi.org\/10.1287\/mnsc.2024.08465 .<\/jats:p>","DOI":"10.1287\/mnsc.2024.08465","type":"journal-article","created":{"date-parts":[[2025,10,28]],"date-time":"2025-10-28T17:46:22Z","timestamp":1761673582000},"page":"5876-5893","source":"Crossref","is-referenced-by-count":1,"title":["Effects of Financial Constraints on Supply Chain Financing Choices and Operational Decisions"],"prefix":"10.1287","volume":"72","author":[{"ORCID":"https:\/\/orcid.org\/0000-0001-5348-4932","authenticated-orcid":false,"given":"Anqi","family":"Wu","sequence":"first","affiliation":[{"name":"Department of Information Systems and Business Analytics, Florida International University, Miami, Florida 33199"}],"role":[{"vocabulary":"crossref","role":"author"}]},{"ORCID":"https:\/\/orcid.org\/0000-0001-6249-4091","authenticated-orcid":false,"given":"Qi","family":"Wu","sequence":"additional","affiliation":[{"name":"Department of Operations, Weatherhead School of Management, Case Western Reserve University, Cleveland, Ohio 44106"}],"role":[{"vocabulary":"crossref","role":"author"}]},{"ORCID":"https:\/\/orcid.org\/0000-0002-7917-5537","authenticated-orcid":false,"given":"Sridhar","family":"Seshadri","sequence":"additional","affiliation":[{"name":"Gies College of Business, University of Illinois, Urbana-Champaign, Illinois 61820"}],"role":[{"vocabulary":"crossref","role":"author"}]}],"member":"109","reference":[{"key":"B1","doi-asserted-by":"publisher","DOI":"10.1093\/qje\/qjac038"},{"key":"B2","doi-asserted-by":"publisher","DOI":"10.1016\/j.jfineco.2014.02.001"},{"key":"B3","doi-asserted-by":"publisher","DOI":"10.1093\/rfs\/hhz005"},{"key":"B4","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.2021.4174"},{"key":"B5","doi-asserted-by":"publisher","DOI":"10.1093\/rfs\/hhm019"},{"key":"B6","doi-asserted-by":"publisher","DOI":"10.1016\/j.jfineco.2013.04.006"},{"key":"B7","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.2020.3896"},{"key":"B8","doi-asserted-by":"publisher","DOI":"10.1111\/jofi.12726"},{"key":"B9","doi-asserted-by":"publisher","DOI":"10.1016\/j.jfineco.2022.01.004"},{"key":"B10","doi-asserted-by":"publisher","DOI":"10.1111\/j.1540-6261.2005.00727.x"},{"key":"B11","doi-asserted-by":"publisher","DOI":"10.1111\/j.1540-6261.2010.01589.x"},{"key":"B12","doi-asserted-by":"publisher","DOI":"10.1111\/1911-3846.12823"},{"key":"B13","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.2020.3695"},{"key":"B14","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.1040.0278"},{"key":"B15","doi-asserted-by":"publisher","DOI":"10.2307\/2534655"},{"key":"B16","doi-asserted-by":"publisher","DOI":"10.1016\/j.jcorpfin.2014.05.001"},{"key":"B17","doi-asserted-by":"publisher","DOI":"10.1093\/qje\/qjz014"},{"key":"B18","doi-asserted-by":"publisher","DOI":"10.1111\/j.1540-6261.2006.00841.x"},{"key":"B19","doi-asserted-by":"publisher","DOI":"10.1002\/nav.20322"},{"key":"B20","doi-asserted-by":"publisher","DOI":"10.1016\/j.jcorpfin.2017.12.013"},{"key":"B21","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.2020.3707"},{"key":"B22","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.2022.4600"},{"key":"B23","doi-asserted-by":"publisher","DOI":"10.1016\/j.jfineco.2018.08.008"},{"key":"B24","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.40.3.320"},{"key":"B25","doi-asserted-by":"publisher","DOI":"10.1093\/rfs\/hhw040"},{"key":"B26","doi-asserted-by":"publisher","DOI":"10.1016\/j.jfineco.2014.09.001"},{"key":"B27","doi-asserted-by":"crossref","unstructured":"Cunningham RM (2004) Finance constraints and inventory investment: Empirical tests with panel data. 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