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Journal of Finance Vol. 63 No. 5 2008

Buyer–Supplier Relationships and the Stakeholder Theory of Capital Structure

Shantanu Banerjee; Sudipto Dasgupta; Yungsan Kim1,2

1 Department of Finance · 2 University of Hong Kong

Abstract

Firms in bilateral relationships are likely to produce or procure unique products—especially when they are in durable goods industries. Consistent with the arguments of Titman and Titman and Wessels, such firms are likely to maintain lower leverage. We compile a database of firms' principal customers (those that account for at least 10% of sales or are otherwise considered important for business) from the Business Information File of Compustat and find results consistent with the predictions of this theory.

DOI
10.1111/j.1540-6261.2008.01403.x
Volume
63
Issue
5
Pages
2507-2552
Language
en
Sources
crossref bibtex:phds-export.bib openalex

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