Journal ArticleDOI
An Empirical Analysis of the Effect of Supply Chain Disruptions on Long-Run Stock Price Performance and Equity Risk of the Firm
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In this article, the authors investigated the long-term stock price effects and equity risk effects of supply chain disruptions based on a sample of 827 disruption announcements made during 1989-2000.Abstract:
This paper investigates the long-term stock price effects and equity risk effects of supply chain disruptions based on a sample of 827 disruption announcements made during 1989–2000. Stock price effects are examined starting one year before through two years after the disruption announcement date. Over this time period the average abnormal stock returns of firms that experienced disruptions is nearly –40%. Much of this underperformance is observed in the year before the announcement, the day of the announcement, and the year after the announcement. Furthermore, the evidence indicates that firms do not quickly recover from the negative effects of disruptions. The equity risk of the firm also increases significantly around the announcement date. The equity risk in the year after the announcement is 13.50% higher when compared to the equity risk in the year before the announcement.read more
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Perspectives in supply chain risk management
TL;DR: In this paper, the authors present a review of various quantitative models for managing supply chain risks and relate various supply chain risk management strategies examined in the research literature with actual practices, highlighting the gap between theory and practice, and motivate researchers to develop new models for mitigating supply chain disruptions.
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Managing Disruption Risks in Supply Chains
TL;DR: In this paper, the authors provide a conceptual framework that reflects the joint activities of risk assessment and risk mitigation that are fundamental to disruption risk management in supply chains, and consider empirical results from a rich data set covering the period 1995-2000 on accidents in the U. S. Chemical Industry.
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The severity of supply chain disruptions: Design characteristics and mitigation capabilities
TL;DR: It is argued, de facto, that supply chain disruptions are unavoidable and, as a consequence, that all supply chains are inherently risky.
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Robust strategies for mitigating supply chain disruptions
TL;DR: In this article, the authors present cost-effective and time-efficient strategies that enable a supply chain to manage the inherent fluctuations efficiently regardless of the occurrence of major disruptions, and these strategies will make the supply chain become more resilient in the face of major disruption.
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Identifying risk issues and research advancements in supply chain risk management
TL;DR: In this article, the authors investigate the research development in supply chain risk management (SCRM), which has shown an increasing global attention in recent years, and present a literature survey and ci...
References
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The Persistence of Mutual Fund Performance
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TL;DR: This article analyzed how mutual fund performance relates to past performance and found evidence that differences in performance between funds persist over time and that this persistence is consistent with the ability of fund managers to earn abnormal returns.
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Information distortion in a supply chain: the bullwhip effect
TL;DR: The authors analyzes four sources of the bullwhip effect: demand signal processing, rationing game, order batching, and price variations, and shows that the distortion tends to increase as one moves upstream.