Information Externalities along the Supply Chain: The Economic Determinants of Suppliers’ Stock Price Reaction to Their Customers’ Earnings Announcements*: Information Externalities along the Supply…

By Shailendra Pandit, C. Wasley, Tzachi Zach. 2011

199 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/38cbef056c87ceab55d03d47b29922ee125f0f70

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Citations in the corpus

Customer-Base Concentration: Implications for Firm Performance and Capital Markets (2012, background): “More recently, Pandit et al. (2011) find that suppliers experience information externalities at the time of their major customers’ information events as evidenced by a positive association between the industry-adjusted returns of customers and suppliers.”
Financial distress and customer-supplier relationships (2017, background): “Second, distressed customers may decrease the future demand on the products or services from suppliers, which deteriorates the suppliers’ future earnings and cash flows (Olsen and Dietrich, 1985; Pandit et al., 2011).”
Analyst following along the supply chain (2011, unknown): “Indeed, Olsen and Dietrich (1985), Hertzel et al. (2008), and Pandit et al. (2011) document evidence consistent with customers’ news being informative for suppliers’ stock prices in various settings.”
Customers’ Risk Factor Disclosures and Suppliers’ Investment Efficiency (2019, background): “Recent accounting studies have begun to look into the informativeness of firms’ annual reports to their supply chain partners, particularly their suppliers and suppliers’ stakeholders (e.g., Raman and Shahrur 2008; Pandit et al. 2011; Hui et al. 2012; Dou et al. 2013).”
Reputation and Loan Contract Terms: The Role of Principal Customers (2016, unknown): “…financial distress risks diffuse along the supply chain and the operating and stock performance of their counterparties is also adversely affected (e.g., Hendricks and Singhal, 2003, 2005; Hertzel et al., 2008; Pandit, Wasley, and Zach, 2011; Kolay, Lemmon, and Tashjian, 2013; Cen et al., 2014).”