The cash-holding link within the supply chain
Using a customer–supplier matched sample of US-listed firms from 1980 to 2016, we study the corporate cash-holding relationship between suppliers and their major customers. The key findings suggest that the cash-holding levels of suppliers are positively affected by those of their major customers, c...
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rr-article-143988232021-04-09T00:00:00Z The cash-holding link within the supply chain Tri Tri Nguyen (10582037) Manh Cuong Nguyen (2272510) Hung Quang Bui (10582040) Nhung Vu (9001514) Cash holdings Customer–supplier relationships Supply chain Using a customer–supplier matched sample of US-listed firms from 1980 to 2016, we study the corporate cash-holding relationship between suppliers and their major customers. The key findings suggest that the cash-holding levels of suppliers are positively affected by those of their major customers, consistent with the liquidity argument. The effects are more pronounced when the major customers are in more favourable financial conditions and when they are considered more important to their suppliers. Our results are robust to various endogeneity problems and additional tests. Taken together, these results bring forth an important corporate cash-holding link within the supply chain. 2021-04-09T00:00:00Z Text Journal contribution 2134/14398823.v1 https://figshare.com/articles/journal_contribution/The_cash-holding_link_within_the_supply_chain/14398823 CC BY-NC-ND 4.0 |
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Cash holdings Customer–supplier relationships Supply chain |
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Cash holdings Customer–supplier relationships Supply chain Tri Tri Nguyen Manh Cuong Nguyen Hung Quang Bui Nhung Vu The cash-holding link within the supply chain |
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Using a customer–supplier matched sample of US-listed firms from 1980 to 2016, we study the corporate cash-holding relationship between suppliers and their major customers. The key findings suggest that the cash-holding levels of suppliers are positively affected by those of their major customers, consistent with the liquidity argument. The effects are more pronounced when the major customers are in more favourable financial conditions and when they are considered more important to their suppliers. Our results are robust to various endogeneity problems and additional tests. Taken together, these results bring forth an important corporate cash-holding link within the supply chain. |
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Default Article |
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Tri Tri Nguyen Manh Cuong Nguyen Hung Quang Bui Nhung Vu |
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Tri Tri Nguyen Manh Cuong Nguyen Hung Quang Bui Nhung Vu |
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Tri Tri Nguyen (10582037) |
title |
The cash-holding link within the supply chain |
title_short |
The cash-holding link within the supply chain |
title_full |
The cash-holding link within the supply chain |
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The cash-holding link within the supply chain |
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The cash-holding link within the supply chain |
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cash-holding link within the supply chain |
publishDate |
2021 |
url |
https://hdl.handle.net/2134/14398823.v1 |
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