Supply chain relationship and loan contract terms:Evidence from firms in the supply chain of Fortune 500 companies

• Main Authors: Sunitarya, 黃桂玲
• Other Authors: Hsiangping Tsai
• Format: Others
• Language: en_US
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/q42g84

碩士 === 元智大學 === 財務金融暨會計碩士班(財務金融學程) === 106 === This study investigates the loan contract terms of firms in the supply chain of Fortune 500 Company relationships. Here, we are using Fortune 500 firms to represent high-quality firms. Furthermore, we also expect more benefits to firms with such relationships as the relationships will be stronger since they have been maintained for longer periods. From the viewpoint of banks, such relationships indicate the borrowers are more stable and less risky. Consistent with our expectation, the result shows that borrowers with Fortune relationships obtain loans with lower loan spread than those with Non-Fortune relationships. In addition, it also shows that firms with long-term Fortune relationships receive loans with lower loan spreads. However, there is no effect on the beginning/ending of Fortune relationship to loan contract terms. Overall, the results indicate that being a Fortune 500 supply chain partner in a long-term relationship brings a favorable effect on its loan contract terms as a borrower.