We assemble a sample of over 10,000 customer-supplier relationships and determine whether the customer owns equity in the supplier. We find that factors related to both contractual incompleteness and financial market frictions are important in the decision of a customer firm to take an equity...

There is no clear theoretical consensus about the overall effect of firm diversification on the magnitude of asymmetric information problems that firms face. We therefore compare stock market based measures of asymmetric information for diversified firms with those they could reasonably expect...

This paper investigates whether leveraged buyouts (LBOs) increase the bargaining power of firms with their suppliers. We find that suppliers to LBO firms experience significantly negative abnormal returns at the announcements of downstream LBOs. We also find that suppliers who have likely made...

We assemble a sample of over 10,000 customer-supplier relationships and determine whether the customer owns equity in the supplier. We find that factors related to both contractual incompleteness and financial market frictions are important in the decision of a customer firm to take an equity...

We investigate the upstream and downstream product-market effects of a large sample of horizontal mergers and acquisitions from 1980-1997. We construct a dataset that identifies the corporate customers, suppliers, and rivals of the firms initiating horizontal mergers and use this dataset to...