This paper investigates whether borrowers' supply chain relationships affect banks' lending decisions. These relationships benefit firms by reducing the information gap with banks, which increases the access to capital, while reducing the cost of the loan. However, banks demand increased...

We examine whether the risk of losing proprietary information through supply chain affects firms’ relationship specific investment (RSI) decisions. Using the staggered adoption of Inevitable Disclosure Doctrine (IDD) by state courts as a shock to firm’s ability to protect information, we...