We document the impact of ESG shocks on the returns of suppliers and clients of affected firms. Our equilibrium model suggests that this impact is contingent not only on the sign and magnitude of the shock, but also on the product between the shock and the level of the ESG score. An empirical...

In the recent literature, increasing attention has been paid to cases when the shocks to a small number of firms would lead to large volatility in many sectors. Theorists find that supply chains play a role, as the shocks to a firm or a sector may propagate through the input–output linkages...

We investigate whether the returns of some industry portfolios predict the returns of other industry portfolios. We find a strong lead-lag structure which is statistically and economically significant. These findings suggest that information diffuses only gradually across industries. Moreover,...

We introduce a novel measure to study the relationship between portfolio concentration in vertically related firms and the performance of actively managed U.S. mutual funds. We find a strong positive relationship between our supply chain concentration measure and fund performance. While funds'...

How did the COVID-19 pandemic affect firm-supplier-customer relationships? We find that, by the end of 2020q1, U.S. firms lost as many as 10.3% of their Chinese suppliers, suffering market value losses of up to $1.4 trillion. Affected U.S. firms were unable to relocate their supply chains,...

Amid the current U.S.-China technological race, the U.S. has imposed export controls to deny China access to strategic technologies. We document that these measures prompted a broad-based decoupling of U.S. and Chinese supply chains. Once their Chinese customers are subject to export controls,...

Regulators have pointed to Scope 3 carbon intensity metrics as a comprehensive measure of a firm’s climate risk profile. However, it has long been recognized that the calculation of Scope 3 emissions is difficult and costly. In this paper, we propose a simple and intuitive approach to...

Maximization of wealth of its owners is the basic financial aim in management of enterprise. Inventory management must contribute to realization of this aim. The paper presents value-based inventory management model (EOQ) modification

We show that firms gain visibility and shareholder base through disclosing supply-chain relationships with large and well-known trading partners in their SEC filings. Using a novel research design that focuses on the investor recognition effect of disclosures, we find a significant improvement...

This paper investigates how a firm's customer base shapes its investor clientele. We show that more concentrated customer base is associated with higher holdings of short-term, but not long-term, institutional investors. The results remain unchanged after addressing endogeneity concerns and...