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Bridge over ocean
1 May 2010 Financial Analysts Journal Volume 66, Issue 3

Return Predictability along the Supply Chain: The International Evidence

  1. Husayn Shahrur
  2. Ying L. Becker
  3. Didier Rosenfeld

In this study of a sample of equities listed on the exchanges of 22 developed countries, equity returns of customer industries led the returns of supplier industries. This customer–supplier/lead–lag effect exhibits characteristics consistent with the view that the effect results from a slow diffusion of value-relevant information.

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