Spillover Effects in the Supply Chain: Evidence from Chapter 11 Filings

Multinational Firms and the International Transmission of Crises: The Real Economy Channel

“…Our paper is related to the literature on the propagation of shocks through network linkages between firms within an economy as theoretically studied by and Kelly, Lustig, and van Nieuwerburgh (2013), and empirically examined by Barrot and Sauvagnat (2016), Hertzel, Li, Officer, and Rodgers (2008), Kolay and Lemmon (2011), Kose and Yi (2001), Johnson (2014), and Wu (2016) (see surveys by Acemoglu et al (2015) and Carvalho (2014)). Our focus, however, is on the propagation of shocks through linkages within firms but across national borders.…”

Risk and risk management of spillover effects: Evidence from the literature

“…Most studies focus on spillover effects on competitors in the same industry. Just a few articles additionally take into account spillover effects to firms in other industries (e.g., Adams, Füss, & Gropp, 2014; Kabir and Hassan, 2005), and, to the best of our knowledge, only Hertzel et al (2008), Kolay and Lemmon (2011), and Barth et al (2019) focus on spillover effects on suppliers.…”

Supplier/customer considerations in corporate financial decisions

“…They also find that contagion to suppliers is more severe when the filing firm industry also experiences negative abnormal returns. Kolay, Lemmon, and Tashjian (2012) examine the effect of a firm's Chapter 11 filing and pre-filing financial distress on its suppliers and customers. They find that suppliers experience a negative abnormal return around the prefiling distress date, and that the CAR is even more negative when the filing firm has a low probability of reorganization.…”