Indirect costs of financial distress

Detalhes bibliográficos
Autor(a) principal: Custódio, Cláudia
Data de Publicação: 2022
Outros Autores: Ferreira, Miguel, Garcia-Appendini, Emilia
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/10362/143362
Resumo: We estimate the economic costs of financial distress due to lost sales, by exploiting cross-supplier variation in real estate assets and leverage and the timing of real estate shocks. We show that for the same client buying from different suppliers, its purchases from distressed suppliers decline by an additional 10% following a drop in real estate prices. The effect is more pronounced in more competitive industries, manufacturing, durable goods, less-specific goods, and when the costs of switching suppliers are low. Our results suggest that clients reduce their exposure to suppliers in financial distress.
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spelling Indirect costs of financial distressFinancial distressEconomic distressReal estate pricesSupply chainWe estimate the economic costs of financial distress due to lost sales, by exploiting cross-supplier variation in real estate assets and leverage and the timing of real estate shocks. We show that for the same client buying from different suppliers, its purchases from distressed suppliers decline by an additional 10% following a drop in real estate prices. The effect is more pronounced in more competitive industries, manufacturing, durable goods, less-specific goods, and when the costs of switching suppliers are low. Our results suggest that clients reduce their exposure to suppliers in financial distress.Nova School of Business and EconomicsRUNCustódio, CláudiaFerreira, MiguelGarcia-Appendini, Emilia2022-08-30T17:02:38Z2022-102022-10-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10362/143362engCustódio, Cláudia, Ferreira, Miguel A., Garcia-Appendini, Emilia. Indirect costs of financial distress. (October 2022) Nova SBE Working Paper Series No. 648info:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2024-03-11T05:21:40Zoai:run.unl.pt:10362/143362Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-20T03:50:54.231842Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv Indirect costs of financial distress
title Indirect costs of financial distress
spellingShingle Indirect costs of financial distress
Custódio, Cláudia
Financial distress
Economic distress
Real estate prices
Supply chain
title_short Indirect costs of financial distress
title_full Indirect costs of financial distress
title_fullStr Indirect costs of financial distress
title_full_unstemmed Indirect costs of financial distress
title_sort Indirect costs of financial distress
author Custódio, Cláudia
author_facet Custódio, Cláudia
Ferreira, Miguel
Garcia-Appendini, Emilia
author_role author
author2 Ferreira, Miguel
Garcia-Appendini, Emilia
author2_role author
author
dc.contributor.none.fl_str_mv RUN
dc.contributor.author.fl_str_mv Custódio, Cláudia
Ferreira, Miguel
Garcia-Appendini, Emilia
dc.subject.por.fl_str_mv Financial distress
Economic distress
Real estate prices
Supply chain
topic Financial distress
Economic distress
Real estate prices
Supply chain
description We estimate the economic costs of financial distress due to lost sales, by exploiting cross-supplier variation in real estate assets and leverage and the timing of real estate shocks. We show that for the same client buying from different suppliers, its purchases from distressed suppliers decline by an additional 10% following a drop in real estate prices. The effect is more pronounced in more competitive industries, manufacturing, durable goods, less-specific goods, and when the costs of switching suppliers are low. Our results suggest that clients reduce their exposure to suppliers in financial distress.
publishDate 2022
dc.date.none.fl_str_mv 2022-08-30T17:02:38Z
2022-10
2022-10-01T00:00:00Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10362/143362
url http://hdl.handle.net/10362/143362
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv Custódio, Cláudia, Ferreira, Miguel A., Garcia-Appendini, Emilia. Indirect costs of financial distress. (October 2022) Nova SBE Working Paper Series No. 648
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Nova School of Business and Economics
publisher.none.fl_str_mv Nova School of Business and Economics
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
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repository.name.fl_str_mv Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
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