원문정보
초록
영어
We analyze spillover effects of supplier equity financing decisions to assess the importance of major trading relationships in creating interdependent valuation effects. We find supplier issuance decisions have important negative spillover effects for large customers, which are more pronounced as information asymmetry or economic dependence of suppliers and customers rises, relationship-specific investment increases, or more valuable product guarantees are offered. Furthermore, customer incentives to maintain supplier relationships are undercut by supplier equity financing decisions, leading to shorter post-issuance trading relationships and larger declines in relationship-specific investments. Our results provide strong evidence of financial and investment policy interdependence across major supply chain members.
목차
1. Introduction
2. Main hypotheses and testable implications
2.1. Supply-chain hypothesis
2.2. Capital structure hypothesis
3. Data and summary statistics
4. Empirical results
4.1. Announcement returns for SEO firms and large public customers
4.2. Multivariate analysis of SEO announcement returns
4.3. Analysis of customer returns
4.4. Additional tests of the capital structure hypothesis
5. Changes in operating performance of issuers and their customers
6. Post-SEO relationships with large customers
6.1. Post-SEO duration of the major customer relationship
6.2. Post-SEO changes in supplier dependence on large customer
6.3. Post-SEO changes in R&D investment
7. Robustness tests
7.1. Negative industry shock
7.2. Customer bargaining power
7.3. Corporate governance
7.4. Competitiveness and Financial Problems of Major Customers
7.5. Endogeneity of major customer relationships
8. Summary and conclusions
Reference
Table
Appendix