The Impact of Supplier Sustainability Risk on Shareholder Value

Seongtae Kim, Stephan M. Wagner*, Claudia Colicchia

*Tämän työn vastaava kirjoittaja

Tutkimustuotos: LehtiartikkeliArticleScientificvertaisarvioitu

Abstrakti

Business scandals like sweatshop labor have received growing attention in the field of supply management. Yet little is known about how detrimental such scandals are to buying firms. This study aims to fill this gap by examining the magnitude of the consequences of what are termed as supplier sustainability risks (SSRs). To this end, we conduct an event study analysis followed by regression modeling based on a sample of 196 U.S. publicly traded firms' SSRs. The results reveal that SSRs are associated with a 1.00 percent reduction in shareholder wealth. The market reacts negatively but not differently to the two types of SSR: process-related risks and product-related risks. Finally, a firm's moral capital does play a mitigating role for SSRs and process-related risks; however, it does not provide insurance-like protection for product-related risks.

AlkuperäiskieliEnglanti
Sivut71-87
Sivumäärä17
JulkaisuJOURNAL OF SUPPLY CHAIN MANAGEMENT
Vuosikerta55
Numero1
DOI - pysyväislinkit
TilaJulkaistu - tammikuuta 2019
OKM-julkaisutyyppiA1 Julkaistu artikkeli, soviteltu

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