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

Autor:	Louis T. W. Cheng, Jack S. C. Poon, Shaolong Tang, Jacqueline Wenjie Wang
Jazyk:	angličtina
Rok vydání:	2022
Předmět:	COVID-19 Supplier concentration Supplier disclosure Stock price effect Industry neutral portfolio Public finance K4430-4675 Finance HG1-9999
Zdroj:	Financial Innovation, Vol 8, Iss 1, Pp 1-28 (2022)
Druh dokumentu:	article
ISSN:	2199-4730
DOI:	10.1186/s40854-022-00391-0
Popis:	Abstract 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.
Databáze:	Directory of Open Access Journals
Externí odkaz:	https://doaj.org/article/579ce9bd0baa43fa900ac3e21b13d048 Zobrazit plný text záznamu View record in DOAJ Plný text ve formátu PDF Plný text ve formátu HTML
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