We explore how risks propagate through product market input-output networks by constructing degree centrality measures for customer and supplier industries. We find central supplier industries have higher market risks than central customer industries and posit that the provision of trade credit...

Trade credit extended to suppliers in the video game industry does not serve as a commitment device for large customers in determining which vendors to make relationship-specific investments in. Suppliers of video games are better off investing in relationships with trade creditors than seeking...

If one customer accounts for a large portion of a supplier's sales, then the loss of that one customer can cripple the supplier's financial health. As a precaution against the additional operating risk induced by being in an important relationship with a customer, I find that suppliers in such...

Today in the economy of any country banks play a vital role. One cannot think of the development of any nation without active assistance rendered by the banking and financial institutions. Banking is a service industry and the bankers are expected to give top priority to provide satisfactory...

I study the effect of banking relationships on the formation of new supply-chain relationships. I find that common banking relationships between a firm and a potential supplier increase the probability that the potential supplier will be selected to start a new supply-chain relationship. The...

How do banks react to increased competition? Recent banking theory offers conflicting predictions about the impact of competition on bank orientation - i.e., the choice of relationship based versus transactional banking. We empirically investigate the impact of interbank competition on bank...

I formulate a model to emphasize the fraud detection role of auditors in the financial market and relate the role to audit and financial reporting delays. In the model, an auditor considers whether to perform extended audit procedures after observing a red flag generated from regular audit...

This paper investigates the effect of investment opportunities, audit quality and debt maturity on the interest paid by all-equity firms. Debt holders are likely to charge higher interest to price-protect themselves because of the under-investment and asset substitution problems. All-equity...