Jiangxia Liu, Sourish Sarkar, Sanjay Kumar and Zhenhu Jin
The purpose of this paper is to explore the stock market impact of supply chain disruptions for public companies in Japan. The impact in the USA and Japan are also compared.
Abstract
Purpose
The purpose of this paper is to explore the stock market impact of supply chain disruptions for public companies in Japan. The impact in the USA and Japan are also compared.
Design/methodology/approach
Using event study on a data set comprising of disruptions announced by Japanese and US companies during year 2000-2013, the authors measure the stock price reaction to supply chain disruptions.
Findings
The study finds that the Japanese companies, in an 11-day window around disruption announcement, witness an average abnormal return of −0.61 percent, which is statistically significant. In comparison to the USA, this stock decline is qualitatively smaller, yet statistically indifferent. The abnormal return is found significant in the two days before disruption announcement. However, a follow-up study with a refined data set (where the event date is the earlier of the announcement or disruption date) does not find any significant abnormal return prior to the event date. This difference from US market suggests the possibility of insider trading. Factors such as book-to-market ratio, industry type, and market capitalization did not affect the stock decline.
Research limitations/implications
The research is limited to a data set from Japan and the USA. Further generalization of findings may need studies focused on other countries.
Practical implications
The results are of interest for supply chain managers. The results should also help global investors in making investment decisions.
Originality/value
Most supply chain disruptions management research is focused on companies in western countries. The paper is the first to test the impact of supply chain disruptions in Japan.
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Greg Filbeck, Sanjay Kumar, Jiangxia Liu and Xin Zhao
This research explores the effect of supply chain disruptions on competitors. Using companies in the automobile industry, we study the contagion effect in supply chains based on…
Abstract
Purpose
This research explores the effect of supply chain disruptions on competitors. Using companies in the automobile industry, we study the contagion effect in supply chains based on the affected firm and its competitors, whether the disruption occurs domestically or by a foreign-based firm, and within the context of economic market cycles.
Design/methodology/approach
Standard event study methodology is used to test the stock price reaction to supply chain disruptions. The purpose of this methodology is to determine whether the announcement of an event produces a “significant” stock price reaction around the time of the announcement. To conduct such tests, daily stock returns are measured around the announcement date and compared with the expected return. To further test whether the event study results can be explained by the business cycle, sample period, and stock characteristics, we use regression analysis. Our analysis is based on a data of 408 disruptions compiled from news announcements.
Findings
Supply chain disruptions have consequences for affected companies as well as competitors. The stock market impact from disruptions in automobile companies is affected by market cycle as well as the brand domicile. We observe that negative stock effect of disruptions occurs in bear markets but not in bull markets. American-brand automakers experience a larger stock price decline in bear markets compared to Japanese-brand automakers. Our results support a contagion effect as American-brand automakers experience negative stock reactions when a competitor announces disruptions. The contagion is more pronounced for American-brand automakers in bear markets when disruptions are announced by Japanese-brand automakers. We do not find evidence of a contagion effect for Japanese-brand automakers, indicating that they may be more resilient and are not affected by competitors’ supply chain performance.
Research limitations/implications
The U.S. automobile industry is dominated by five major firms. While our research is ground-breaking, the ability to generalizing to other industries that are less concentrated in leadership and competition may be limited.
Practical implications
Our study has implications for supply chain managers who make decisions regarding investments in disruptions mitigation. The results are also of interest to investors who may seek opportunities to take short positions on stocks within the automobile industry.
Originality/value
Our paper is the first to test the impact of supply chain disruptions on competitors. Additionally, we characterize the impact of disruptions based on market cycle and company domicile.
Sanjay Kumar, Jiangxia Liu and Jess Scutella
Supply chain structure, characteristics, and applicable policies differ between developing and developed countries. While most supply chain management research is directed toward…
Abstract
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 disruption, companies experience significant negative returns. Company size, book-to-market ratio, and debt-to-equity ratio were found to be insignificant in affecting the stock market reactions to disruptions. The authors also compiled supply chain disruptions data for US companies. When compared to the US companies, Indian companies register a significantly higher stock decline in the event of a disruption.
Research limitations/implications
Supply chain disruptions data from India and the USA are analyzed. Broad applicability of results across countries may require studying other developing countries. The research demonstrates potential effectiveness of investment in supply chain management initiatives. It also motivates research focussed specifically on supply chains in developing countries.
Practical implications
Supply chain decision makers in India could benefit from investment in disruptions management and mitigation practices. The results provide a valuation of effective supply chain management. The findings provide guidance for investors in making decisions when supply chains face disruptions.
Originality/value
The paper studies the financial consequences of supply chain disruptions in a developing country. The study is valuable because of increasing globalization, outsourcing, and the economic role of developing countries.
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Lingyun Huang, Jiankun Liu and Zhigang Huang
The operational framework of external financing in the correlation between the gender of entrepreneurs and firm performance remains to be resolved. This study aims to investigate…
Abstract
Purpose
The operational framework of external financing in the correlation between the gender of entrepreneurs and firm performance remains to be resolved. This study aims to investigate the mediating effect of external financing on gender-based disparities in private firm performance and to explore its heterogeneity within the Chinese context.
Design/methodology/approach
Based on national data from the 10th to 13th Chinese Private Enterprise Survey, this study used a bootstrap-based mediation effect model to analyze the role of external financing as a mediator in the relationship between entrepreneur gender and firm performance.
Findings
This study found that external financing is a constructive mediator between entrepreneur gender and firm performance. Heterogeneity analysis revealed that external financing plays a complementary mediation role in the impact of entrepreneur gender on performance in West China. In the tertiary industry, external financing acts as the sole mediator for the impact of gender on firm performance. Notably, this mediating effect is present in non-startups but not in startups.
Practical implications
The findings suggest that external financing can improve the firm performance of female entrepreneurs. Governments and policymakers should strengthen financial support for female entrepreneurs in West China, tertiary industry and non-startup enterprises.
Originality/value
This paper contributes to the literature on gender and corporate governance by shedding light on the mediating role of external financing in the relationship between the gender of business owners and firm performance.
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Caiyun Cui, Tingyu Xie, Yong Liu, Meng Liu, Huan Cao and Huilian Li
This paper aims to explore the influencing factors of public perceived efficacy of emergency infrastructure projects based on the triadic interactive determinism, and analyze the…
Abstract
Purpose
This paper aims to explore the influencing factors of public perceived efficacy of emergency infrastructure projects based on the triadic interactive determinism, and analyze the relationship among these factors.
Design/methodology/approach
Based on the triadic interactive determinism, we explored the factors influencing public perceived efficacy of emergency infrastructure project and empirically verified the relationship among these factors and perceived efficacy by using data drawn from a questionnaire survey of 491 residents near Leishenshan Hospital, Jiangxia District, Wuhan, China.
Findings
Prior experience, emotional response, personal expectation, public trust, context message and interactivity level, namely behavior, individual and environment, affect the perceived efficacy of public emergency infrastructure projects.
Practical implications
The results offer an insight into public perceived efficacy of emergency infrastructure project from the perspective of antecedents in a triadic reciprocal determinism, which provides a reference basis for the sustainable development of the emergency infrastructure projects. This study also suggests valuable practical implications to government departments to improve the quality of administrative decision-making effectively.
Originality/value
Although existing studies have found some influencing factors of public perceived efficacy in general infrastructure, there is still a lack of systematic carding and quantitative description of influencing factors of public perceived efficacy of emergency infrastructure projects. This study bridges this gap by exploring the determinants and their influencing relationship of public perceived efficacy especially for emergency infrastructure projects.
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Qiongwei Ye and Baojun Ma
Internet + and Electronic Business in China is a comprehensive resource that provides insight and analysis into E-commerce in China and how it has revolutionized and continues to…
Abstract
Internet + and Electronic Business in China is a comprehensive resource that provides insight and analysis into E-commerce in China and how it has revolutionized and continues to revolutionize business and society. Split into four distinct sections, the book first lays out the theoretical foundations and fundamental concepts of E-Business before moving on to look at internet+ innovation models and their applications in different industries such as agriculture, finance and commerce. The book then provides a comprehensive analysis of E-business platforms and their applications in China before finishing with four comprehensive case studies of major E-business projects, providing readers with successful examples of implementing E-Business entrepreneurship projects.
Internet + and Electronic Business in China is a comprehensive resource that provides insights and analysis into how E-commerce has revolutionized and continues to revolutionize business and society in China.
Donghan Jiang, Hualing Lin, Jamal Khan and Yaqing Han
Professor independent directors have been the subject of academic debate as to whether they can improve corporate innovation performance. Accordingly, this paper aims to…
Abstract
Purpose
Professor independent directors have been the subject of academic debate as to whether they can improve corporate innovation performance. Accordingly, this paper aims to investigate the relationship between professor independent directors, the marketization process and corporate innovation performance in China.
Design/methodology/approach
Using a sample of Chinese A-share listed companies from 2014 to 2017, this study examines how professor independent directors and the (low and high) marketization process affect corporate innovation performance.
Findings
The empirical analysis of this yields the following main results. First, enterprises with a higher proportion of professor independent directors outperform those with a low proportion of professor independent directors in terms of corporate innovation. Second, the study of introducing the marketization process finds that there is no “market failure”. Third, while professor independent directors have a significant association with innovation performance in the high-marketization group, this association is negligible in the low-marketization group, indicating that there is no “substitution effect”.
Originality/value
This research provides empirical evidence to support the hiring of professors with relevant backgrounds as independent directors who can contribute meaningfully to corporate governance and innovation while also fostering industrial transformation. This study also identifies that the role of professor independent directors in facilitating corporate innovation is more effective in regions with a high degree of marketization than in regions with a low degree of marketization, implying that increasing marketization benefits the role of professor independent directors in facilitating corporate innovation.
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Lili Zhang, Jie Ling and Mingwei Lin
The aim of this paper is to present a comprehensive analysis of risk management in East Asia from 1998 to 2021 by using bibliometric methods and tools to explore research trends…
Abstract
Purpose
The aim of this paper is to present a comprehensive analysis of risk management in East Asia from 1998 to 2021 by using bibliometric methods and tools to explore research trends, hotspots, and directions for future research.
Design/methodology/approach
The data source for this paper is the Web of Science Core Collection, and 7,154 publications and related information have been derived. We use recognized bibliometric indicators to evaluate publications and visually analyze them through scientific mapping tools (VOS Viewer and CiteSpace).
Findings
The analysis results show that China is the most productive and influential country/region. East Asia countries have strong cooperation with each other and also have cooperation with other countries. The study shows that risk management has been involved in various fields such as credit, supply chain, health emergency and disaster especially in the background of COVID-19. We also found that machine learning, especially deep learning, has been playing an increasingly important role in risk management due to its excellent performance.
Originality/value
This paper focuses on studying risk management in East Asia, exploring its publication's fundamental information, citation and cooperation networks, hotspots, and research trends. It provides some reference value for scholars who are interested or further research in this field.
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Sheng-Qun Chen, Ting You and Jing-Lin Zhang
This study aims to enhance the classification and processing of online appeals by employing a deep-learning-based method. This method is designed to meet the requirements for…
Abstract
Purpose
This study aims to enhance the classification and processing of online appeals by employing a deep-learning-based method. This method is designed to meet the requirements for precise information categorization and decision support across various management departments.
Design/methodology/approach
This study leverages the ALBERT–TextCNN algorithm to determine the appropriate department for managing online appeals. ALBERT is selected for its advanced dynamic word representation capabilities, rooted in a multi-layer bidirectional transformer architecture and enriched text vector representation. TextCNN is integrated to facilitate the development of multi-label classification models.
Findings
Comparative experiments demonstrate the effectiveness of the proposed approach and its significant superiority over traditional classification methods in terms of accuracy.
Originality/value
The original contribution of this study lies in its utilization of the ALBERT–TextCNN algorithm for the classification of online appeals, resulting in a substantial improvement in accuracy. This research offers valuable insights for management departments, enabling enhanced understanding of public appeals and fostering more scientifically grounded and effective decision-making processes.
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This paper aims to examine how situational factors with social support affecting purchase intention in social commerce (SC). In Taiwan’s SC, the relationship between trust belief…
Abstract
Purpose
This paper aims to examine how situational factors with social support affecting purchase intention in social commerce (SC). In Taiwan’s SC, the relationship between trust belief and purchase intention has always been a key issue.
Design/methodology/approach
This study presents a research model that comprises five hypothesis with five constructs, including situational factors, social support, senses, trust belief and purchase intention. The model is tested on data collected from 532 valid samples in Taiwan, using structural equation modeling. The results show that, in order of importance, control senses and raise mediation trust belief reach the better purchase intention.
Findings
The findings of the study provide practical insights in understanding how seller should notice consumer’s trust belief, in order to enhance purchase intention for the SC as a whole.
Originality/value
Much existing consumer behavior research is focused on decision making rather than the trust belief themselves. Accordingly, analyzing how senses influence trust belief and purchase intention is an important issue in SC.