Customer's short positions and supplier's investment decisions

• Main Authors: CHEN, Xia, GONG, Guojin, LUO, Shuqing
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2015
• Subjects: Accounting; Corporate Finance; Portfolio and Security Analysis
• Online Access: https://ink.library.smu.edu.sg/soa_research/1869; https://ink.library.smu.edu.sg/context/soa_research/article/2896/viewcontent/ChenGongLuo_26June2015.pdf
• Institution: Singapore Management University

Short interest contains valuable information about a firm’s business fundamentals. We investigate whether such information affects business partners’ real investment decisions in the supply-chain setting. We predict and find that a supplier’s future investments (including inventory, R&D, and tan...