{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,5,3]],"date-time":"2026-05-03T03:07:07Z","timestamp":1777777627288,"version":"3.51.4"},"reference-count":8,"publisher":"Emerald","issue":"3-4","content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":[],"published-print":{"date-parts":[[2017,12,21]]},"abstract":"<jats:p>This paper studies a supply chain composed of a supplier and a buyer. The supplier has to make a buyer-specific capacity investment before demand uncertainty has been resolved. After the uncertainty has been revealed, the firms decide whether to trade with each other and on what terms through bilateral bargaining. I show that the supplier will borrow risky debt and invest more in capacity than if it Ire purely equity financed. The expanded capacity under risky borrowing is below the channel-efficient level if it is optimal to finance capacity investment with a mixture of equity and debt, and above the channel-efficient level if it is optimal to finance capacity investment entirely with debt.<\/jats:p>","DOI":"10.1561\/0200000068","type":"journal-article","created":{"date-parts":[[2017,12,21]],"date-time":"2017-12-21T05:58:51Z","timestamp":1513835931000},"page":"358-371","source":"Crossref","is-referenced-by-count":0,"title":["Debt Financing and Supply Chain Capacity Investment"],"prefix":"10.1108","volume":"10","author":[{"given":"Qiaohai (Joice)","family":"Hu","sequence":"first","affiliation":[{"name":"University of Missouri St. Louis ,","place":["USA"]}],"role":[{"role":"author","vocabulary":"crossref"}]}],"member":"140","published-online":{"date-parts":[[2017,12,21]]},"reference":[{"issue":"5","key":"2026033113515984400_ref001","doi-asserted-by":"crossref","first-page":"629","DOI":"10.1287\/mnsc.47.5.629.10486","article-title":"\u201cContracting to assure supply: How to share demand forecasts in a supply chain\u201d","volume":"47","author":"Cachon","year":"2001","journal-title":"Management Science"},{"issue":"5-part-2","key":"2026033113515984400_ref002","doi-asserted-by":"crossref","first-page":"80","DOI":"10.1287\/mnsc.18.5.80","article-title":"\u201cA generalized Nash solution for twoperson bargaining games with incomplete information\u201d","volume":"18","author":"Harsanyi","year":"1972","journal-title":"Management Science"},{"key":"2026033113515984400_ref003","first-page":"155","volume-title":"Econometrica: Journal of the Econometric Society","author":"Nash","year":"1950"},{"key":"2026033113515984400_ref004","first-page":"97","volume-title":"Econometrica: Journal of the Econometric Society","author":"Rubinstein","year":"1982"},{"key":"2026033113515984400_ref005","author":"Sako","year":"1992"},{"issue":"3","key":"2026033113515984400_ref006","first-page":"71","article-title":"\u201cWhen and when not to vertically integrate\u201d","volume":"34","author":"Stuckey","year":"1993","journal-title":"Sloan Management Review"},{"issue":"1","key":"2026033113515984400_ref007","doi-asserted-by":"crossref","first-page":"94","DOI":"10.1287\/msom.1060.0126","article-title":"\u201cSimple relational contracts to motivate capacity investment: Price only vs. price and quantity\u201d","volume":"9","author":"Taylor","year":"2007","journal-title":"Manufacturing & Service Operations Management"},{"issue":"4","key":"2026033113515984400_ref008","doi-asserted-by":"crossref","first-page":"317","DOI":"10.1287\/msom.5.4.317.24881","article-title":"\u201cCapacity investments in supply chains: Sharing the gain rather than sharing the pain\u201d","volume":"5","author":"Tomlin","year":"2003","journal-title":"Manufacturing & Service Operations Management"}],"container-title":["Foundations and Trends\u00ae in Technology, Information and Operations Management"],"original-title":[],"language":"en","link":[{"URL":"https:\/\/www.emerald.com\/fttom\/article-pdf\/10\/3-4\/358\/11159023\/0200000068en.pdf","content-type":"application\/pdf","content-version":"vor","intended-application":"syndication"},{"URL":"https:\/\/www.emerald.com\/fttom\/article-pdf\/10\/3-4\/358\/11159023\/0200000068en.pdf","content-type":"unspecified","content-version":"vor","intended-application":"similarity-checking"}],"deposited":{"date-parts":[[2026,4,29]],"date-time":"2026-04-29T19:01:48Z","timestamp":1777489308000},"score":1,"resource":{"primary":{"URL":"https:\/\/www.emerald.com\/fttom\/article\/10\/3-4\/358\/1332668\/Debt-Financing-and-Supply-Chain-Capacity"}},"subtitle":[],"short-title":[],"issued":{"date-parts":[[2017,12,21]]},"references-count":8,"journal-issue":{"issue":"3-4","published-print":{"date-parts":[[2017,12,21]]}},"URL":"https:\/\/doi.org\/10.1561\/0200000068","relation":{},"ISSN":["1571-9545","1571-9553"],"issn-type":[{"value":"1571-9545","type":"print"},{"value":"1571-9553","type":"electronic"}],"subject":[],"published":{"date-parts":[[2017,12,21]]}}}