The cash-holding link within the supply chain

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

TitleThe cash-holding link within the supply chain
TypeJournal article
AuthorsNguyen, 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.

KeywordsCash Holdings · Customer-supplier Relationships · Supply Chain
JournalReview of Quantitative Finance and Accounting
Journal citation57, pp. 1309-1344
ISSN0924-865X
1573-7179
Year2021
PublisherSpringer
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 online09 Apr 2021

Related outputs

The asymmetry in firms’ mechanisms of cash holdings adjustments: evidence from the G-5 economies
Nguyen, C. 2019. The asymmetry in firms’ mechanisms of cash holdings adjustments: evidence from the G-5 economies. Review of Quantitative Finance and Accounting. 53 (2), pp. 429-463. https://doi.org/10.1007/s11156-018-0754-1

An Investigation into Value Co-creation in Service Supply Chains
Nguyen, T., Wu, R.Y. and Evans, R.D. 2017. An Investigation into Value Co-creation in Service Supply Chains . 2017 IEEE Technology & Engineering Management Conference (TEMSCON). Santa Clara, CA, USA 08 - 10 Jun 2017 IEEE . https://doi.org/10.1109/TEMSCON.2017.7998411

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Restricted files

Accepted author manuscript

Under embargo until 09 Apr 2022
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