Supply Chain Disruption Risk and Customers'Cash Holdings:Empirical Evidence from Suppliers'Annual Report Tone
With increasing"Black swan"incidents suffered by suppliers,exploring the spillover effects of supply chain disruption and managing supply chain disruption risk has emerged as a hot topic both in academics and practice.Using a dataset from voluntary information disclosure of top five customers by Chinese listed firms,this paper investigates whether and how customers manage potential supply chain disruption risk implied in suppliers'Management Discussion and Analysis(MD&A)tone from the perspective of cash holdings.Our results show that,customers do consider potential supply chain disruption risk implied in suppliers'MD&A tone.The more negative the MD&A tone of suppliers,the higher the level of cash held by customers.Further evidence shows that,the above results are stronger for suppliers with more dependence by customers,for suppliers with better information quality,and for suppliers located in regions with better business environment.Our paper not only contributes to the literatures on supply chain disruption risk man-agement and spillover effects of corporate textual information disclosure,but also provides insight into actively identifying and managing supply chain dis-ruption risk from textual information disclosed by firms,and enhancing supply chain resilience and thus building sustainable supply chain,which plays a significant role on improving China'global competitiveness.
NETL
NSTL
万方数据
