Professor Qian Xianhang’s Co-authored Paper Published in Financial Management

Recently, the paper Upstream Propagation of Shocks In Supply Chains: Evidence from Earthquakes, co-authored by Professor Qian Xianhang, Postdoctoral Qiu Shanyun from the School of Economics, Shandong University, and Professor Zhang Le from the Australian National University, was published online in Financial Management, an international prestigious journal in finance.

The development of production networks has made the relationship between enterprises and upstream and downstream increasingly close, which may lead to the propagation of external shocks among supply chain enterprises. Using listed company data in China and taking earthquakes as exogenous shocks, the paper empirically tests the impact of customers’ earthquake shocks on corporate investment behavior. The study finds that when customers are hit by earthquakes, enterprises’ investment will shrink by about 10%, especially for non-state-owned enterprises, enterprises with high product uniqueness, enterprises in competitive industries and non-durable goods industries. The paper identifies the corresponding impact mechanism and finds that the reduction of enterprise sales revenue is an important mechanism for customer shocks to affect enterprise investment. After customers experience earthquake shocks, enterprises will adjust their customer structure, including reducing transactions with such customers and developing new customers in non-earthquake areas. The paper provides a supply chain perspective for understanding corporate investment behavior and solid evidence for the upward propagation of external shocks in the supply chain.

Qian Xianhang is a Professor and doctoral supervisor at the School of Economics, Shandong University, a Young Expert of the "Taishan Scholar" Program of Shandong Province, and a "Young Scholar in Liberal Arts" of Shandong University. His research fields include corporate finance and corporate governance. He has published more than 50 papers in journals such as Economic Research, Management World, Economic Research (Quarterly), Journal of Financial Research, China Industrial Economics, Financial Management, Journal of International Money and Finance, and International Review of Finance. His research results have won the first Sun Yefang Financial Innovation Award, the second prize of the 10th National Excellent Financial Paper, the first prize of Shandong Provincial Social Science Outstanding Achievement Award, and the Shandong Provincial Social Science Discipline Rising Star Award. He has presided over projects such as the National Natural Science Foundation, the National Social Science Fund and the Humanities and Social Sciences Fund of the Ministry of Education.

Qiu Shanyun is a Special Funded Postdoctoral Fellow at the School of Economics, Shandong University. Her research fields include corporate finance and corporate governance. She has published more than 10 papers in journals such as Nankai Economic Studies, The Journal of World Economy, Financial Management, and Journal of International Money and Finance.