This paper explores the sources of counterparty risk in material supply relationships. Using long-term supply contracts …-specific assets increase the firm's exposure to counterparty risk. Further, we show that contracts with protective financial covenants …

using federal supply contracts for a standardized product, where suppliers are selected by procurement auctions. The …

Supply chain coordination is enabled by adequately designed contracts so that decision making by multiple actors avoids … deterministic supply the activities in supply chains can be coordinated by sophisticated contracts while the simple wholesale price … contract fails to achieve coordination due to the double marginalization effect. Advanced contracts are typically characterized …

Using a sample of long-term supply contracts collected from SEC filings, I show that hold-up concerns and information … term contracts. However, when longer duration contracts facilitate the exchange of relationship specific assets, the … parties substitute short-term contracts with financial covenants in order to reduce moral hazard. Covenant restrictions are …

contracts that leverage improved observability of performance to achieve a greater sharing of risk and reward …