Capital structure decisions along the supply chain: Evidence from import competition

• 成果类型: Article
• 署名作者: Huang, Qianqian; Kim, Ryoonhee
• 署名单位: City University of Hong Kong; Soongsil University
• 刊物名称: JOURNAL OF INTERNATIONAL BUSINESS STUDIES
• ISSN/ISSBN: 0047-2506
• DOI: 10.1057/s41267-019-00225-9
• 发表日期: 2019
• 页码: 873-894
• 关键词: globalization; import competition; capital structure; customer-supplier links

摘要

This paper studies the spillover effect of import competition in downstream industries on upstream capital structure. We find that a large reduction in import tariffs in a customer industry induces suppliers to choose more conservative financial policies. We show that firms lower their leverage more when the customer-supplier relationship is more valuable to the firms and when firms are more vulnerable to the downstream shock. Finally, firms adjust their leverage mainly by issuing more equity.