Economics at your fingertips  

Supply-chain spillover effects of IPOs

Kenji Kutsuna, Janet Smith (), Richard Smith () and Kazuo Yamada

Journal of Banking & Finance, 2016, vol. 64, issue C, 150-168

Abstract: We use the IPOs of supply-chain partners as precipitating events and test for positive spillovers on private firms (the “IPO spillover hypothesis”). A trading partner’s IPO may benefit its suppliers through increased demand and its customers by reducing an input-related growth constraint. A newly public firm may also transmit additional liquidity to trading partners through trade credit practices. Using Japanese data on important relationships between IPO firms and their private suppliers and customers, we find that suppliers and customers experience significantly higher rates of growth in revenue, cash balances, and PP&E than do other private firms. The paper appears to be the first to document real and financial effects of positive liquidity shocks on supply-chain partners.

Keywords: Supply-chain relationships; IPO; SME; Trade credit (search for similar items in EconPapers)
JEL-codes: L14 G30 L26 G31 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

Journal of Banking & Finance is currently edited by Ike Mathur

More articles in Journal of Banking & Finance from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2019-03-31
Handle: RePEc:eee:jbfina:v:64:y:2016:i:c:p:150-168