Inter-firm linkages and the wealth effects of financial distress along the supply chain

• 成果类型: Article
• 署名作者: Hertzel, Michael G.; Li, Zhi; Officer, Micah S.; Rodgers, Kimberly J.
• 署名单位: University of Southern California; Arizona State University; Arizona State University-Tempe; American University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2007.01.005
• 发表日期: 2008
• 页码: 374-387
• 关键词: bankruptcy; Financial distress; contagion; supply chain

摘要

Extant research examines the extent to which bankruptcy has intra-industry valuation consequences. This study broadens the investigation by examining the wealth effects of distress and bankruptcy filing for suppliers and customers of filing firms. On average, important wealth effects occur prior to and at bankruptcy filings and extend beyond industry competitors along the supply chain. Specifically, distress related to bankruptcy filings is associated with negative and significant stock price effects for suppliers. Supplier wealth effects are more negative when intra-industry contagion is more severe. We also investigate the importance of industry structure, specialized product nature, and leverage on supply chain effects. (c) 2007 Elsevier B.V. All rights reserved.