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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Main Authors: Tri Tri Nguyen, Manh Cuong Nguyen, Hung Quang Bui, Nhung Vu
Format: Default Article
Published: 2021
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Online Access:https://hdl.handle.net/2134/14398823.v1
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id rr-article-14398823
record_format Figshare
spelling 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
institution Loughborough University
collection Figshare
topic Cash holdings
Customer–supplier relationships
Supply chain
spellingShingle 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
description 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.
format Default
Article
author Tri Tri Nguyen
Manh Cuong Nguyen
Hung Quang Bui
Nhung Vu
author_facet Tri Tri Nguyen
Manh Cuong Nguyen
Hung Quang Bui
Nhung Vu
author_sort 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
title_fullStr The cash-holding link within the supply chain
title_full_unstemmed The cash-holding link within the supply chain
title_sort cash-holding link within the supply chain
publishDate 2021
url https://hdl.handle.net/2134/14398823.v1
_version_ 1794834763428659200