Credit Market Disruptions and Liquidity Spillover Effects in the Supply Chain

• 成果类型: Article
• 署名作者: Costello, Anna M.
• 署名单位: University of Michigan System; University of Michigan
• 刊物名称: JOURNAL OF POLITICAL ECONOMY
• ISSN/ISSBN: 0022-3808
• DOI: 10.1086/708736
• 发表日期: 2020
• 页码: 3434-3468
• 关键词: firm-level evidence; Trade credit; maturity; origins; POLICY; COSTS

摘要

How do shocks to the banking sector travel through the corporate economy? Using a novel data set of interfirm sales, I show that suppliers exposed to a large and exogenous decline in bank financing pass this liquidity shock to their downstream customers. The spillover effect occurs through two channels: a reduction in trade credit offered and a reduction in the total supply of goods and services. After exposure to the spillover, downstream customers show a spike in credit risk and a reduction in employment. Overall, the paper highlights the importance of financial spillovers in explaining corporate sector outcomes.