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??? |
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頁(從 - 到) | 938-952 |
頁數 | 15 |
期刊 | International Review of Economics and Finance |
卷 | 80 |
DOIs | |
出版狀態 | 已出版 - 7月 2022 |