Abstract

International supply chains are essential for linking global markets but face persistent challenges. While regulatory frameworks are crucial for supporting international business operations, fragmented oversight across jurisdictions often undermines supply chain resilience.We examinehowcooperation amongsecurities regulators, through the adoption of the Multilateral Memorandum of Understanding (MMoU), affects global supply chain contracting. Using a stacked difference-in-differences model, we find that relative to domestic firms, foreign firms listed in the U.S. experience increases in both new contracts and new customers from MMoU signatory countries after their home countries sign the agreement. This positive effect is more pronounced among firms facing higher agency costs, and tighter financial constraints, as well as in countries with greater barriers to contract enforcement. The MMoU strengthens suppliers’ financing capacity and lengthens supply chain relationship and contract durations.We further show that the expansion in supply chain contracting is driven primarily by customers from non-U.S. MMoU member countries. In addition, the MMoU-induced increase in supply chain collaboration extends beyond U.S. cross-listed firms. Overall, our findings demonstrate that cross-border regulatory cooperation generates positive spillovers in fostering global supply chains.

If you are interested in the research, please read the paper:

Chen, X.*, Jiang, L.*, & Wang, Y. (2026). Cross-border cooperation among securities regulators and supply chain collaboration: evidence from US-listed foreign firms. Journal of International Business Studies, 1-20.

* Corresponding Author

A full version of this article could be viewed at:

https://link.springer.com/article/10.1057/s41267-026-00902-6