Distance produces the fear of loss: Customer geographic proximity and corporate cash holdings

被引：4

作者：

Wang, Li ^{[1
]}

Wu, Yiqi ^{[1
]}

Chen, Yaxin ^{[2
]}

Dai, Yunhao ^{[3
,4
,5
]}

机构：

[1] Zhongnan Univ Econ & Law, Govt Accounting Res Inst, Sch Accounting, Wuhan, Peoples R China

[2] Univ Int Business & Econ, Sch Banking & Finance, Beijing, Peoples R China

[3] Huazhong Univ Sci & Technol, Sch Econ, Wuhan, Peoples R China

[4] Huazhong Univ Sci & Technol, Res Ctr Contemporary Econ, Wuhan, Peoples R China

[5] Huazhong Univ Sci & Technol, Sch Econ, Wuhan 430074, Peoples R China

来源：

INTERNATIONAL REVIEW OF FINANCIAL ANALYSIS | 2023年 / 87卷

基金：

中国国家自然科学基金;

关键词：

Customer-supplier relationships; Geographic proximity; Cash holdings; China; SUPPLIER RELATIONSHIPS; FINANCIAL CONSTRAINTS; CAPITAL STRUCTURE; TRADE CREDIT; POLICY; GOVERNANCE; DETERMINANTS; INVESTMENT; RISK; UNCERTAINTY;

D O I：

10.1016/j.irfa.2023.102572

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

Suppliers usually worry about losing important customers far away. This study examines the effect of long-distance customers on the supplier's cash holdings in China. We find that firms with long-distance major cus-tomers tend to hold more cash holdings, and the exogenous opening of the high-speed rail can reduce the effects of distant customers. Our results still hold when considering the endogeneity concerns. The cross-sectional tests suggest that the impact of long-distance customers is more pronounced for firms that have fewer accounts re-ceivables and a larger customer concentration. Furthermore, we document that suppliers with a long-distance supply chain relationship hold more cash mainly due to the precautionary motive. Overall, we highlight that the distance between suppliers and customers is an important factor that affects a firm's cash holdings policy, and we also provide some suggestions for both suppliers and policymakers.

引用

页数：17