Customers' tone in MD&A disclosure and suppliers' inventory efficiency: Evidence from China

Yingying Xin, Xiao Zeng and Zhengying Luo

Managerial and Decision Economics, 2022, vol. 43, issue 8, 3833-3853

Abstract: This article examines whether and how customers' tone in MD&A disclosure affects suppliers' inventory efficiency. Using an unbalanced panel dataset compiled from multiple archival sources of Chinese‐listed companies, we find that the more positive tone in MD&A disclosure of customers is associated with the higher efficient suppliers' inventory and the results still hold after a battery of robust tests. The customers' tone in MD&A disclosure affects supplier firms' inventory efficiency by reducing the bullwhip effect. In addition, we find that customers' tone in MD&A disclosure has a more pronounced effect on improving suppliers' inventory efficiency when the customers have more analyst coverage and when the suppliers have less bargaining power.

Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1002/mde.3632

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: https://EconPapers.repec.org/RePEc:wly:mgtdec:v:43:y:2022:i:8:p:3833-3853

Access Statistics for this article

Managerial and Decision Economics is currently edited by Antony Dnes

More articles in Managerial and Decision Economics from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().