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MANAGERIAL LEARNING THROUGH CUSTOMER–SUPPLIER LINKS
Author(s) -
Fuller Kathleen P.,
Yildiz Serhat
Publication year - 2018
Publication title -
journal of financial research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.319
H-Index - 49
eISSN - 1475-6803
pISSN - 0270-2592
DOI - 10.1111/jfir.12161
Subject(s) - dividend , business , stock (firearms) , finance , investment decisions , empirical evidence , investment (military) , behavioral economics , mechanical engineering , philosophy , epistemology , politics , political science , law , engineering
We provide empirical evidence that supplier firms’ managers learn new information from their customers’ stock prices when they make investment, long‐term financing, short‐term financing, and dividend decisions. Our findings provide novel empirical evidence that the stock market has real effects on the economy through customer–supplier links. Our results indicate that managerial learning is not confined to peers’ or firms’ own stock prices but is a more comprehensive process that includes cross‐industry learning. Furthermore, managerial learning is not limited to investment decisions but is also present in long‐term financing, short‐term financing, and dividend decisions.