Inter-Firm Linkages and the Wealth Effects of Financial Distress Along the Supply Chain

@article{Hertzel2008InterFirmLA,
  title={Inter-Firm Linkages and the Wealth Effects of Financial Distress Along the Supply Chain},
  author={M. Hertzel and Z. Li and M. S. Officer and K. Rodgers},
  journal={Journal of Financial Economics},
  year={2008},
  volume={87},
  pages={374-387}
}
  • M. Hertzel, Z. Li, +1 author K. Rodgers
  • Published 2008
  • Economics
  • Journal of Financial Economics
  • 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… CONTINUE READING
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    Supply Chain Concentration and Cost of Capital
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