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Navigating the storm: The effect of supplier strategic alliances during the IPO suspension crisis

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  • Chen, Yuyang
  • Pei, Changshuai
  • Wang, Xinlu

Abstract

This study investigates the value of supplier strategic alliances (SSAs) when firms face unexpected equity financing constraints. Exploiting the 2012 IPO suspension in China as a natural experiment, we examine a sample of firms that had received regulatory approval but experienced sudden listing delays. We find that SSAs act as a vital financial buffer, facilitating trade credit during regulatory disruptions. Specifically, delay-listed firms with SSAs obtain significantly more trade credit, approximately 22.7% of total purchases, than firms without such alliances. Further analysis reveals that this financing support is amplified when strategic suppliers possess strong economic incentives and when the partnership is characterized by high commitment, low communication costs, and high regional trustworthiness. Our findings contribute to the literature by demonstrating the risk-sharing role of vertical alliances in mitigating the adverse financial effects of policy uncertainty.

Suggested Citation

  • Chen, Yuyang & Pei, Changshuai & Wang, Xinlu, 2026. "Navigating the storm: The effect of supplier strategic alliances during the IPO suspension crisis," Pacific-Basin Finance Journal, Elsevier, vol. 97(C).
    • Handle: RePEc:eee:pacfin:v:97:y:2026:i:c:s0927538x26000612
    DOI: 10.1016/j.pacfin.2026.103115
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