Does supplier concentration matter to investors during the COV1D-19 crisis: evidence from China?

被引:12
作者
Cheng, Louis T. W. [1 ]
Poon, Jack S. C. [2 ]
Tang, Shaolong [3 ]
Wang, Jacqueline Wenjie [3 ]
机构
[1] Hang Seng Univ Hong Kong, Sch Business, Hong Kong, Peoples R China
[2] Hong Kong Polytech Univ, Sch Accounting & Finance, Hong Kong, Peoples R China
[3] Beijing Normal Univ Hong Kong Baptist Univ, United Int Coll, Div Business & Management, Zhuhai, Peoples R China
关键词
COVID-19; Supplier concentration; Supplier disclosure; Stock price effect; Industry neutral portfolio; CUSTOMER-BASE CONCENTRATION; CHAIN RESILIENCE; RISK;
D O I
10.1186/s40854-022-00391-0
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
The literature shows that investor attention to customer-supplier disclosure increases when suppliers' information arrival is anticipated. Due to the widespread of city lockdowns in China and the implementation of social distancing to control the COVID-19 pandemic, investor attention to potential disruption of the supply chain spikes, leading to a price devaluation for firms with high supplier concentration risk. We find that a higher degree of supplier concentration is related to more serious stock price declines over the short-term and medium-term windows right after the Wuhan lockdown. This result lends support to the argument that the concentration risk of suppliers is a significant consideration for China stock market investors, especially under the potential financial distress at the firm level induced by the COVID-19 crisis.
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页数:28
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