Customer-Supplier Relationships and the Cost of Debt
Keywords:
Accounting, Finance, Costumer, Supplier, Cost of DebtAbstract
We examine the relation between the existence of a large customer and the cost of debt financing. We find that credit ratings are lower for firms with a large customer. We also find that yield spreads are higher for firms with a large customer. The results indicate that firms having a large customer have higher cost of debt financing, which is consistent with our capital structure hypothesis.
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Published
2017-09-01
How to Cite
Seo, H., Yi, S., & Kwon, K.- min. (2017). Customer-Supplier Relationships and the Cost of Debt. Journal of Accounting and Finance, 17(6). Retrieved from https://articlegateway.com/index.php/JAF/article/view/929
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