Optimal capital structure, bargaining, and the supplier market structure

• 成果类型: Article
• 署名作者: Chu, Yongqiang
• 署名单位: University of South Carolina System; University of South Carolina Columbia
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2012.05.010
• 发表日期: 2012
• 页码: 411-426
• 关键词: capital structure; Suppliers; bargaining; Relation-specific investment

摘要

This paper studies the relationship between firm leverage and supplier market structure. We find that firm leverage decreases with the degree of competition between suppliers. Specifically, leverage decreases with the elasticity of substitution between suppliers. Leverage also decreases with the number of suppliers when the elasticity of substitution is high, and increases with the number of suppliers when the elasticity is low. We also provide empirical evidence that is consistent with the model predictions. (C) 2012 Elsevier B.V. All rights reserved.