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This paper studies the relationship between firm leverage and supplier market structure by examining their joint impacts on bargaining and relation-specific investments. We find that firm leverage decreases with the degree of competition among suppliers. Specifically, leverage decreases with the...
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-specific investment, and so does competition among suppliers. We explore the interaction between leverage and supplier competition, and … integrated firm makes more investment …
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A firm's leverage increases its bargaining power and reduces suppliers' relation-specific investment, and so does …
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