TY - GEN
T1 - The Impact of Integrated Market Power on Trade Credit and Cash Holding in US Retail Sector
AU - Jhang, Shih Sian
AU - Cheng, Chih Yang
AU - Lin, Winston T.
N1 - Publisher Copyright:
© 2021, Springer Nature Switzerland AG.
PY - 2021
Y1 - 2021
N2 - This paper explores how integrated market power (Fscore) affects upstream trade credit and cash holding in the US retail sector. We investigate the above relationship via the COMPUSTAT database and focus on publicly traded firms in the US from 1984 to 2014. Applying factor analysis, we first retrieve a common factor (i.e., Fscore) in the retail sector based on three dimensions, including industry completion, finance, and operations management. Then, we run the regression analysis by ordinary least squares, Fama-Macbeth regression, and year fixed effects models. Overall, we also find that Fscore performs a negative influence on demand uncertainty and upstream trade credit. Instead, the Fscore is positively associated with the retailer’s internal cash holdings. Lastly, we reexamine the above relationships across industries within the retail sector and provide several managerial implications for this study.
AB - This paper explores how integrated market power (Fscore) affects upstream trade credit and cash holding in the US retail sector. We investigate the above relationship via the COMPUSTAT database and focus on publicly traded firms in the US from 1984 to 2014. Applying factor analysis, we first retrieve a common factor (i.e., Fscore) in the retail sector based on three dimensions, including industry completion, finance, and operations management. Then, we run the regression analysis by ordinary least squares, Fama-Macbeth regression, and year fixed effects models. Overall, we also find that Fscore performs a negative influence on demand uncertainty and upstream trade credit. Instead, the Fscore is positively associated with the retailer’s internal cash holdings. Lastly, we reexamine the above relationships across industries within the retail sector and provide several managerial implications for this study.
KW - Cash holding
KW - Integrated market power
KW - Retail sector
KW - Trade credit
UR - https://www.scopus.com/pages/publications/85112194177
U2 - 10.1007/978-3-030-77750-0_13
DO - 10.1007/978-3-030-77750-0_13
M3 - Conference contribution
AN - SCOPUS:85112194177
SN - 9783030777494
T3 - Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)
SP - 197
EP - 212
BT - HCI in Business, Government and Organizations - 8th International Conference, HCIBGO 2021, Held as Part of the 23rd HCI International Conference, HCII 2021, Proceedings
A2 - Nah, Fiona Fui-Hoon
A2 - Siau, Keng
PB - Springer Science and Business Media Deutschland GmbH
T2 - 8th International Conference on HCI in Business, Government and Organizations, HCIBGO 2021, Held as Part of the 23rd HCI International Conference, HCII 2021
Y2 - 24 July 2021 through 29 July 2021
ER -