Séminaire: Systemic Risk in Customer-Supplier Networks

1 septembre 2014

09 septembre 2014Paris
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Speaker: Ramazan Gençay (Simon Fraser University, Burnaby, British Columbia)

Date: Tuesday, September 9th, 2014 at 2.00 p.m.

Location: IESEG School of Management, 3 rue de la Digue (B-building, room B252)

Room : B252 (H409)

Abstract:

We investigate systemic risk from the perspective of each individual firm. Using the structure of customersupplier
network, we construct Customer and Supplier Beta to separately investigate potentially different
properties of downstream and upstream linkages. We find a pattern of asymmetry for a company to be more
resilient to financial crisis 2008 to 2009, having « close » relationships with customers is more important than
with suppliers. Besides, investors could construct Customer Beta to gain insights about the relative negative
impact on a stock’s performance from a potential crisis, which is an innovative way of conducting risk analysis.

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