NEW PUBLICATION: This study investigates the impact of supply disruptions on financial leverage (debt-equity ratio) in the U.S. economy from 1998:Q1 to 2024:Q1. The study employs a linear and non-linear Local Projections (LP) and Bayesian Vector Autoregression (BVAR) models to explore dynamic relationships. While the LP models reveal that a supply chain shock negatively affects leverage with statistically significant results, there is no evidence of state dependence. The BVAR model suggests that a supply chain shock is disruptive via a reduction (an increase) in output (inflation), accompanied by lower leverage.
You can find the WP version, the abstract, the keywords and the online appendix in an older post:
You can quote this article as:
Ginn, W., & Saadaoui, J. (2024). Impact of Supply Chain Disruptions on Financial Leverage. International Review of Financial Analysis, 103883. Open Access thanks to a grant from the Université Paris VIII Vincennes-Saint-Denis.
