Supply-chain spillover effects of IPOs

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• 作者：Kenji Kutsuna^a ; Janet Kiholm Smith^b ; ^{janet.smith@cmc.edu" class="auth_mail" title="E-mail the corresponding author} ; Richard Smith^c ; Kazuo Yamada^d
• 关键词：L14 ; G30 ; L26 ; G31
• 刊名：Journal of Banking & Finance
• 出版年：2016
• 出版时间：March 2016
• 年：2016
• 卷：64
• 期：Complete
• 页码：150-168
• 全文大小：835 K

文摘

We use the IPOs of supply-chain partners as precipitating events and test for positive spillovers on private firms (the “IPO spillover hypothesis”). A trading partner’s IPO may benefit its suppliers through increased demand and its customers by reducing an input-related growth constraint. A newly public firm may also transmit additional liquidity to trading partners through trade credit practices. Using Japanese data on important relationships between IPO firms and their private suppliers and customers, we find that suppliers and customers experience significantly higher rates of growth in revenue, cash balances, and PP&E than do other private firms. The paper appears to be the first to document real and financial effects of positive liquidity shocks on supply-chain partners.