The Supply Chain Effects of Bankruptcy

@article{Yang2015TheSC,
  title={The Supply Chain Effects of Bankruptcy},
  author={S. Alex Yang and J. Birge and Rodney P. Parker},
  journal={Manag. Sci.},
  year={2015},
  volume={61},
  pages={2320-2338}
}
This paper examines how a firm's financial distress and the legal environment regarding the ease of bankruptcy reorganization can alter product market competition and supplier-buyer relationships. We identify three effects-predation, bail-out, and abetment-that can change firms' behavior from their actions in the absence of financial distress. The predation effect increases competition before potential bankruptcy as the nondistressed competitor behaves as if it has some first-mover advantage… Expand
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This paper examines how a firm's financial distress and the legal environment regarding the ease of bankruptcy reorganization can alter product market competition and supplier-buyer relationships. WeExpand
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