Nguyen, T., Nguyen, C., Bui, Hung Quang and Vu, Tuyet Nhung 2021. The cash-holding link within the supply chain. Review of Quantitative Finance and Accounting. 57, pp. 1309-1344. https://doi.org/10.1007/s11156-021-00979-0
| Title | The cash-holding link within the supply chain |
|---|---|
| Type | Journal article |
| Authors | Nguyen, T., Nguyen, C., Bui, Hung Quang and Vu, Tuyet Nhung |
| Abstract | 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. |
| Keywords | Cash Holdings · Customer-supplier Relationships · Supply Chain |
| Journal | Review of Quantitative Finance and Accounting |
| Journal citation | 57, pp. 1309-1344 |
| ISSN | 0924-865X |
| 1573-7179 | |
| Year | 2021 |
| Publisher | Springer |
| Accepted author manuscript | File Access Level Open (open metadata and files) |
| Digital Object Identifier (DOI) | https://doi.org/10.1007/s11156-021-00979-0 |
| Web address (URL) | https://link.springer.com/article/10.1007%2Fs11156-021-00979-0 |
| Publication dates | |
| Published online | 09 Apr 2021 |