The impact of supply chain disruptions on stockholder wealth in India

作者：Sanjay Kumar, Jiangxia Liu, Jess Scutella · 发表于：International Journal of Physical Distribution & Logistics Management · 年份：2015 · DOI：10.1108/ijpdlm-09-2013-0247 · 被引用次数：43 · 研究领域：Supply Chain Resilience and Risk Management、Quality and Supply Management、Sustainable Supply Chain Management

Purpose – Supply chain structure, characteristics, and applicable policies differ between developing and developed countries. While most supply chain management research is directed toward supply chains in developed countries, the authors wish to explore the financial impact of disruptions on supply chains in a developing country. The purpose of this paper is to highlight the importance of effective supply chain management practices that could help avoid or mitigate disruptions in Indian companies. The authors study the stock market impact of supply chain disruptions in Indian companies. The authors also aim to understand the difference in financial implications from disruptions between companies in India and the USA. Design/methodology/approach – Event study methodology is applied on supply chain disruptions data from Indian companies. The data are compiled from public news release in Indian press. A data set of 301 disruptions for a ten-year period from 2003-2012 is analyzed. Stock valuation of a company is used to assess the financial impact. Findings – The results show that Indian companies on average lose −2.88 percent of shareholder wealth in an 11-day window covering the event day and five days pre- and post-disruption announcement. A significant stock decline was observed as early as three days prior to announcement, indicating possibility of insider trading and information differentials between investors. Irrespective of the location and responsibility of a disruptio...