Supply chain, product pricing, and dynamic capital structure

Chang Chih Chen, Henry Hongren Huang, Chun I. Lee

研究成果: 雜誌貢獻期刊論文同行評審

摘要

This paper examines how firms' reliance on a supply chain affects their capital structure decisions via the suppliers' product pricing. In our model, a firms’ reliance on a supply chain results in either a risk-amplification effect or a hedge effect, depending on the direction and magnitude of product demand correlations between firms along the supply chain. The risk-amplification (hedge) effect leads firms to reduce (increase) their leverage, pay a higher (lower) interest rate for debt, and take a more conservative (aggressive) leverage adjustment policy. Our model further captures several supply-chain-specific phenomena such as the EBIT bullwhip, risk propagation, and the supplier-driven vertical spillover effect.

原文???core.languages.en_GB???
頁(從 - 到)938-952
頁數15
期刊International Review of Economics and Finance
80
DOIs
出版狀態已出版 - 7月 2022

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