Supply Chain Disruption Risk and Corporate Debt Concentration

This study investigates how supply chain disruption risk affects debt concentration, defined as the tendency of firms to rely on a small number of debt instruments. Using Chinese A-share listed firms as our sample, we find that firms with higher supply chain disruption risk have more concentrated debt structures. This effect is more pronounced among non-mature firms, non-state-owned enterprises, and firms with lower liquidation value. Mechanism analyses reveal that supply chain disruption risk elevates corporate default risk and exacerbates financing constraints, both of which contribute to increased debt concentration. Overall, our findings contribute to the literature on the economic implications of supply chain risks and underscore the importance of strategic debt structure decisions as a risk management tool. JEL Classification: G32; M41