IDEAS home Printed from https://ideas.repec.org/a/cup/jfinqa/v52y2017i06p2565-2610_00.html
   My bibliography  Save this article

CEO Turnovers and Disruptions in Customer–Supplier Relationships

Author

Listed:
  • Intintoli, Vincent J.
  • Serfling, Matthew
  • Shaikh, Sarah

Abstract

Events that disrupt customer–supplier relationships pose a source of risk for suppliers that depend on a customer for a large portion of their revenues. We identify the replacement of a customer’s chief executive officer (CEO) as a disruptive event that results in suppliers losing substantial sales. These losses are greater when an incumbent customer CEO is more likely to be entrenched and stem largely from the successor divesting assets. Finally, we document that losses in sales following a customer CEO turnover lead to declines in a supplier’s financial performance and that suppliers experience negative abnormal stock returns to announcements of customer CEO departures.

Suggested Citation

  • Intintoli, Vincent J. & Serfling, Matthew & Shaikh, Sarah, 2017. "CEO Turnovers and Disruptions in Customer–Supplier Relationships," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 52(6), pages 2565-2610, December.
    • Handle: RePEc:cup:jfinqa:v:52:y:2017:i:06:p:2565-2610_00
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S0022109017000965/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Huang, Yichu & Fan, Yaoyao, 2022. "Risk along the supply chain: Geographic proximity and corporate risk taking," Finance Research Letters, Elsevier, vol. 50(C).
    2. Ting Luo & Jianqiao Yu, 2019. "Friends along supply chain and relationship-specific investments," Review of Quantitative Finance and Accounting, Springer, vol. 53(3), pages 895-931, October.
    3. In-Mu Haw & Wenming Wang & Wenlan Zhang & Xu Zhang, 2022. "Capturing the straw in the wind: do short sellers trade on customer information?," Review of Quantitative Finance and Accounting, Springer, vol. 58(4), pages 1363-1394, May.
    4. Kim, Taeyeon & Kim, Hyun-Dong & Park, Kwangwoo, 2023. "Agency costs of customer concentration," International Review of Economics & Finance, Elsevier, vol. 85(C), pages 533-558.
    5. Mei Cheng & Jacob Jaggi & Spencer Young, 2022. "Customer concentration of targets in mergers and acquisitions," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 49(7-8), pages 1314-1355, July.
    6. Kim, Taeyeon & Kim, Hyun-Dong & Park, Kwangwoo, 2023. "Customer concentration and firm risk: The role of outside directors from a major customer," Journal of Banking & Finance, Elsevier, vol. 152(C).
    7. (Jianqiu) Bai, John & Mkrtchyan, Anahit, 2023. "What do outside CEOs really do? Evidence from plant-level data," Journal of Financial Economics, Elsevier, vol. 147(1), pages 27-48.
    8. Fang, Yiwei & Hasan, Iftekhar & Lin, Chih-Yung & Sun, Jiong, 2022. "The impact of overconfident customers on supplier firm risks," Journal of Economic Behavior & Organization, Elsevier, vol. 197(C), pages 115-133.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:jfinqa:v:52:y:2017:i:06:p:2565-2610_00. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/jfq .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.