Credit Market Disruptions and Liquidity Spillover Effects in the Supply Chain

2020 ◽  
Vol 128 (9) ◽  
pp. 3434-3468 ◽  
Author(s):  
Anna M. Costello
Keyword(s):  
Supply Chain ◽  
Credit Market ◽  
Spillover Effects

Welfare effects of vegetable producers' inclusiveness in supply chain coordination: direct effects and spillovers

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Qiao Liang ◽  
Lin Li ◽  
Rongrong Bai
Keyword(s):  
Supply Chain ◽  
Supply Chain Coordination ◽  
Spillover Effect ◽  
Spillover Effects ◽  
Production Performance ◽  
Farm Income ◽  
Vegetable Production ◽  
Content Type ◽  
Positive Effects ◽  
Quality Certification

PurposeThe purpose of this paper is to estimate the effect of vegetable producers' inclusiveness in supply chain coordination on vegetable production performance and potential spillover effect on farm and non-farm income.Design/methodology/approachA comprehensive dataset comprised of 410 paired vegetable producers in China is applied. Propensity score matching (PSM) estimation method is used to control for the selection bias problem.FindingsThe empirical results indicate that contracting farming does not have significant effect on yield or profit of vegetable production, but promote producers to obtain quality certification. In comparison, cooperative membership has positive effects on the yield, profit and quality certification of producers. Additionally, cooperatives generate positive spillover effects on members' farm and non-farm income, though the results are sensitive to unobserved factors. The inclusion of spillover effects helps to find out the potential unobserved effects which are neglected by most studies and design better policies to promote the development of agricultural companies and farmer cooperatives.Originality/valueFirst, empirical evidence is provided for theories regarding the roles of different supply chain coordination modes on producers. Second, the analysis on evaluating the effects of supply chain coordination also considers the spillover effect on the farming of other products and even non-farm work of involved producers. Third, a unique dataset comprised of 420 paired vegetable producers, based on an extensive survey is built.

Economic links and the wealth effects of layoff announcements along the supply chain

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yetaotao Qiu ◽  
Michel Magnan
Keyword(s):  
Supply Chain ◽  
Stock Price ◽  
Spillover Effects ◽  
Good News ◽  
Wealth Effects ◽  
Content Type ◽  
Efficiency And Effectiveness ◽  
Comprehensive Picture ◽  
Stock Price Reaction ◽  
Information Externality

PurposeThis paper investigates the effects of layoff announcement by customers on the valuation and operating performance of their supply chain partners.Design/methodology/approachThe authors collect corporate layoff announcements from 8-K filings submitted by US publicly-traded firms from 2004 to 2017. Using event study methodology, they examine the information externality of corporate layoffs on announcing firms' suppliers.FindingsResults show that suppliers, on average, experience a negative stock price reaction around their major customers' layoff announcements. The negative price effect is exacerbated when industry rivals of layoff-announcing customers also suffer from negative intra-industry contagion effects. Additionally, supply chain spillover effects are asymmetric, with only “bad news” layoff announcements causing significant value implications for suppliers, but not “good news” announcements. Supplier firms also reduce their investments in and sales dependence on layoff-announcing customers in subsequent years.Practical implicationsThis study shows that layoff decisions, often aimed at improving firms' efficiency and effectiveness, create uncertainty for the suppliers' operation and cause negative value implications on firms' upstream partners. Findings should be useful to corporate decision-makers in making layoff decisions.Originality/valueThis paper is one of the first to address the value implications of corporate layoffs on announcing firms' suppliers. It provides a more comprehensive picture of the economy-wide impact of achieving efficiency through employee layoffs.

The Economics and Finance of Customer–Supplier Relationships

2021 ◽  
Author(s):  
Ling Cen ◽  
Sudipto Dasgupta
Keyword(s):  
Supply Chain ◽  
Bargaining Power ◽  
Stock Price ◽  
Information Diffusion ◽  
Trade Credit ◽  
Spillover Effects ◽  
Innovation Activity ◽  
Price Informativeness ◽  
Customer Base ◽  
Disruption Risk

The interrelationships between upstream supplier firms and downstream customer firms—popularly referred to as supply-chain relationships—constitute one of the most important linkages in the economy. Suppliers not only provide production inputs for their customers but, increasingly, also engage in R&D and innovation activity that is beneficial to the customers. Yet, the high degree of relationship specificity that such activities involve, and the difficulty of writing complete contracts, expose suppliers to potential hold-up problems. Mechanisms that mitigate opportunism have implications for the origins of such relationships, firm boundary, and organizational structure. Smaller supplier firms benefit from relationships with large customer firms in many ways, such as knowledge sharing, operational efficiency, insulation from competition, and reputation in capital markets. However, customer bargaining power, undiversified customer base, and innovation strategy also expose suppliers to disruption risk. Relationship specificity of investment, customer bargaining power, and customer concentration associated with a less diversified customer base have important consequences for financing decisions of suppliers and customers, such as capital structure choice and the provision and role of trade credit. Changes in the risk of disruption (e.g., bankruptcy filings, takeover activity, and credit market shocks) have spillover effects along the supply chain. The correlation of economic fundamentals of suppliers and customers and the co-attention that they receive from market participants translate to return predictability (with implications for trading strategies), information diffusion along the supply chain, and stock-price informativeness of supply-chain partners.

Spillover Effects in the Supply Chain: Evidence from Chapter 11 Filings

2012 ◽  
Author(s):  
Madhuparna Kolay ◽  
Michael L. Lemmon ◽  
Elizabeth Tashjian
Keyword(s):  
Supply Chain ◽  
Spillover Effects

scholarly journals Chinese provincial multi-regional input-output database for 2012, 2015, and 2017

2021 ◽  
Vol 8 (1) ◽  
Author(s):  
Heran Zheng ◽  
Yangchun Bai ◽  
Wendong Wei ◽  
Jing Meng ◽  
Zhengkai Zhang ◽  
...  
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Economic Transition ◽  
Hybrid Methods ◽  
National Level ◽  
Mainland China ◽  
Spillover Effects ◽  
Input Output ◽  
Economic Sectors ◽  
Wide Range

AbstractGlobal production fragmentation generates indirect socioeconomic and environmental impacts throughout its expanded supply chains. The multi-regional input-output model (MRIO) is a tool commonly used to trace the supply chain and understand spillover effects across regions, but often cannot be applied due to data unavailability, especially at the sub-national level. Here, we present MRIO tables for 2012, 2015, and 2017 for 31 provinces of mainland China in 42 economic sectors. We employ hybrid methods to construct the MRIO tables according to the available data for each year. The dataset is the consistent China MRIO table collection to reveal the evolution of regional supply chains in China’s recent economic transition. The dataset illustrates the consistent evolution of China’s regional supply chain and its economic structure before the 2018 US-Sino trade war. The dataset can be further applied as a benchmark in a wide range of in-depth studies of production and consumption structures across industries and regions.

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