Technology and Investment, 2023, 14, 63-87 https://www.scirp.org/journal/ti ISSN Online: 2150-4067 ISSN Print: 2150-4059 DOI: 10.4236/ti.2023.142004 May 19, 2023 63 Technology and Investment Impact of Firm Power on Debt Structure, Bank Loan Financing and Corporate Performance in China Nicolas Diodji Mamadou Faye 1 , El Hadji Omar Ndao 2 , Kokou W. Tozo 3 , Mouanda Gilhaimé 4 , Mohammed Abdul-Latif 5 1 Direction des Financements et des Partenariats Public-Privé, Ministère de l’Economie, du Plan et de la Coopération, Dakar, Sénégal 2 School of Economics Sciences, Management and Trade, Universite du Sine-Saloum Elhadji Ibrahima NIASS, Fatick, Sénégal 3 Institute of New Structural Economics, Peking University, Beijing, China 4 School of Economics, Henan University, Kaifeng, China 5 Newcastle Business School, University of Newcastle, Newcastle, Australia Abstract This paper examines the incidence of firm value chain power on its exterior financing liabilities, bank loan financing and firm performance. Taking data from the China Stock Market and Accounting Research (CSMAR), this study has gathered cross-sectional data of 13,653 firms from 2006 to 2016. The re- sults indicate that industries with higher power in the value chain carry a lower volume of financing liabilities. The results also show that companies with greater firm power use lower financing liabilities and aim to utilize non-cost commercial credit for financing. The study also reveals that credi- tors from the banks sector give more hand to large firms, and the role of firm power has merely been accepted by banks in big-scale and constant compa- nies. Additionally, firm power has no considerable impact on the maturity of bank loans. After last, this study moreover unveils the economic outcomes of the effect of firm value chain power across the differences in firm financial performance. Low-scale, great-growth firms with bigger firm power get best financial performance. Keywords Company Value Chain Power, Industry Chain, Financial Liabilities, Bank Loan Financing, Firm Performance 1. Introduction The shape of a firm in the upstream and downstream industry chain carried an How to cite this paper: Faye, N. D. M., Ndao, E. H. O., Tozo, K. W., Gilhaimé, M., & Abdul-Latif, M. (2023). Impact of Firm Power on Debt Structure, Bank Loan Fi- nancing and Corporate Performance in Chi- na. Technology and Investment, 14, 63-87. https://doi.org/10.4236/ti.2023.142004 Received: September 14, 2022 Accepted: May 16, 2023 Published: May 19, 2023 Copyright © 2023 by author(s) and Scientific Research Publishing Inc. This work is licensed under the Creative Commons Attribution-NonCommercial International License (CC BY-NC 4.0). http://creativecommons.org/licenses/by-nc/4.0/ Open Access