Information Externalities along the Supply Chain: The Economic Determinants of Suppliers’ Stock Price Reaction to Their Customers’ Earnings Announcements*

Contemporary Accounting ResearchVolume 28, Issue 4 p. 1304-1343 Information Externalities along the Supply Chain: The Economic Determinants of Suppliers’ Stock Price Reaction to Their Customers’ Earnings Announcements* Shail Pandit, Shail Pandit University of Illinois at ChicagoSearch for more papers by this authorCharles E. Wasley, Charles E. Wasley University of RochesterSearch for more papers by this authorTzachi Zach, Tzachi Zach The Ohio State UniversitySearch for more papers by this author Shail Pandit, Shail Pandit University of Illinois at ChicagoSearch for more papers by this authorCharles E. Wasley, Charles E. Wasley University of RochesterSearch for more papers by this authorTzachi Zach, Tzachi Zach The Ohio State UniversitySearch for more papers by this author First published: 22 March 2011 https://doi.org/10.1111/j.1911-3846.2011.01092.xCitations: 162 † Accepted by Jeffrey Callen. We gratefully acknowledge comments and suggestions made by two anonymous reviewers, Dick Dietrich (2010 CAR Conference discussant), Steve Salterio (Editor), Jeffrey Callen (Associate Editor), Bill Baber, Richard Frankel, Shane Heitzman, Ron King, Hai Lu, Claudine Mangen, Pervin Shroff, Senyo Tse, Jerry Zimmerman, and conference and workshop participants at the 2010 CAR Conference, American Accounting Association annual meeting, FARS Conference, George Washington University, University of Minnesota, and Washington University in St. Louis. We thank Anthony Meder for research assistance. Charles Wasley acknowledges the financial support provided by the Simon School at the University of Rochester. Read the full textAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onEmailFacebookTwitterLinkedInRedditWechat References Aharony , J. , and I. Swary . 1983 . Contagion effects of bank failures: Evidence from capital markets . Journal of Business 56 : 305 – 22 . Baginski , S . 1987 . Intra-industry information transfers associated with management forecasts of earnings . Journal of Accounting Research 25 ( 2 ): 196 – 216 . Ball , R. , and L. Shivakumar . 2008 . How much new information is there in earnings? Journal of Accounting Research 46 ( 5 ): 975 – 1016 . 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