Supplier/customer considerations in corporate financial decisions

Kale, Jayant R.; Meneghetti, Costanza

doi:10.1016/j.iimb.2014.06.001

Cited by 9 publications

(3 citation statements)

References 46 publications

(53 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Second, as previous research discussed, cyber‐related incidents are associated with financial distress. Kale and Meneghetti (2014) conclude that customers will be affected if suppliers experience financial distress. Also, suppliers may reduce their production quality when involved in financial distress.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

The importance of cybersecurity disclosures in customer relationships

Nelson,

Wang

2024

J Corp Accounting Finance

View full text Add to dashboard Cite

The escalating use of digital technologies has spotlighted the crucial role of cybersecurity in safeguarding sensitive information within companies. This study explores the relationship between a firm's major customers and its cybersecurity awareness. Drawing on SEC‐mandated disclosures, we employ four proxies to measure changes in customer‐supplier relationships. Our findings reveal that customers increase their purchases from suppliers whose cybersecurity awareness scores improve. Additionally, we examine the interplay between customers and suppliers more susceptible to nonpublic adverse news, particularly during cyber events. The study emphasizes the importance of cybersecurity disclosure for regulators, supply chain partners, and corporate management. It also contributes to the literature on factors influencing the duration of customer‐supplier relationships and underscores the significance of supplier characteristics. “Understanding and disclosing cybersecurity risks are” paramount in an increasingly digital business landscape.

show abstract

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

The importance of cybersecurity disclosures in customer relationships

Nelson,

Wang

2024

J Corp Accounting Finance

View full text Add to dashboard Cite

show abstract

“…15 See Kale and Meneghetti (2014) for an excellent review. Garcia and Norli (2012) and data on U.S. state-level DROUGHT_TREND are provided by Javadi and Masum (2021).…”

Section: 41mentioning

confidence: 99%

Climate change and corporate cash holdings: Global evidence

Javadi

Masum

Aram

et al. 2023

Financial Management

View full text Add to dashboard Cite

Using data from 41 countries, we provide novel empirical evidence that firms’ cash holdings are positively associated with their climate change exposure. This evidence is robust to different model specifications and survives a battery of tests to ease concerns related to spurious correlation and omitted variable bias. Using the release of the Stern Review as an exogenous shock to climate change awareness, we show that this association becomes significantly stronger after the release of the Review and particularly so for firms with higher exposure to regulatory and transition risk dimensions of climate change as well as financially constrained firms. Overall, results fit consistently within the precautionary motive framework and suggest that firms hold more cash to safeguard against the adverse impact of climate change.

show abstract

“…Suppliers with strong bargaining power may even require firms to pay in advance, which is not conducive to the firms' commercial credit financing, thus reducing the internal cash flow and increasing the capital risk. Moreover, the relationship‐specific asset investments that firms carry out to strengthen cooperation with major suppliers may also significantly increase the firms' business risk (Kale & Meneghetti, 2014; Raman & Shahrur, 2008). That is because such assets only create value in specific transactions, which may also increase the firms' operational risk.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

How to deal with customer and supplier concentration to attain sustainable financial growth? The role of business strategy

Ahsan

Mirza²,

Gull

et al. 2023

Bus Strat Env

View full text Add to dashboard Cite

For effective supply chain management, firms should focus on the relationship with their immediate stakeholders in the supply chain, namely, suppliers (upstream) and customers (downstream). This study investigates the impact of customer and supplier concentration as well as business strategy on sustainable financial growth, using financial data of 2021 Chinese non‐financial firms listed from 2006 to 2020. Additionally, it explores the moderating effect of business strategy on the relationship between customer and supplier concentration and sustainable financial growth. We find that higher customer and supplier concentration weakens the bargaining power of Chinese firms, which reduces their financial growth. However, an appropriate business strategy can help such firms achieve sustainable financial growth. We find that an aggressive business strategy moderates the negative impact of supplier concentration, while a defensive business strategy moderates the negative impact of customer concentration on financial growth. Finally, our results for the direct impact of customer and supplier concentration as well as business strategy hold for state‐owned and non‐state‐owned firms. However, we find differences regarding the moderating impact of business strategy between state‐owned and non‐state‐owned firms. Our results are robust to time and industry fixed effects, alternate proxies of financial growth and regression techniques.

show abstract

Supplier/customer considerations in corporate financial decisions

Cited by 9 publications

References 46 publications

The importance of cybersecurity disclosures in customer relationships

The importance of cybersecurity disclosures in customer relationships

Climate change and corporate cash holdings: Global evidence

How to deal with customer and supplier concentration to attain sustainable financial growth? The role of business strategy

Contact Info

Product

Resources

About