Upstream propagation of shocks in supply chains: Evidence from earthquakes
研究客户遭受地震冲击如何向上游传导影响供应商的投资，发现供应商会减少投资、降低与受灾客户的交易并寻找替代客户，对非国企、产品独特性和竞争性行业的企业影响更大。
Abstract We investigate how natural disaster shocks to customers propagate upstream to suppliers’ investment. Using data from the major customers of Chinese listed firms and earthquake information during 2009–2019, we investigate the impact of customers’ earthquake exposure on corporate investment. We find that firms significantly reduce investment after their customers experience earthquakes, particularly for non‐state‐owned enterprises, firms with higher product uniqueness, firms in competitive industries, and firms in nondurable goods industries. Furthermore, our analysis highlights firms’ sales as one of the potential channels through which customers’ earthquake exposure influences firm investment. We also find that following an earthquake supplier firms reduce their transactions with the affected customers and develop alternative customers.