Does customer corporate financialization have contagion effects on their suppliers?

Yan Zhao and Kun Su

Economics Letters, 2025, vol. 247, issue C

Abstract: Using a sample of Chinese non-financial listed firms from 2009 to 2022, this paper shows that corporate financialization has a supply chain contagion effect, i.e., the higher the financialization of customers, the higher the level of financialization of suppliers. The effect is stronger when firms have bad operational efficiency, have close geographical distance to customers, and when their customer relationship is benign. In addition, customer stability can reduce this effect, while customer market value can enhance it.

Keywords: Corporate financialization; Supply chain contagion; Customer relationship (search for similar items in EconPapers)
JEL-codes: G30 G34 M21 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:247:y:2025:i:c:s016517652400586x

DOI: 10.1016/j.econlet.2024.112102

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