The impact of supply chain revamping announcements on shareholder value

IF 4.1 3区 管理学 Q2 BUSINESS
Xinrui Zhan, Yinping Mu, Jiafu Su
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引用次数: 0

Abstract

Purpose

Supply chain revamping (SCR) is an important strategy for firms to improve their supply chain operations in a rapidly changing environment. The purpose of this study is to shed light on the impact of SCR on shareholder value.

Design/methodology/approach

Based on Signaling Theory and 184 SCR announcements published by US-listed firms from 2013 to 2018, this study employs event study methodology and empirically examines three issues: Antecedents of SCRs; Primary purposes and actions of SCRs; In addition to the impact of SCRs on shareholder value using stock returns, we also examined the factors that can influence the extent of stock returns.

Findings

Firstly, our results indicate that SCRs are primarily driven by firms’ poor prior performance, CEO turnover and external control threats (ECTs). Secondly, the stock market favors SCRs aiming to meet customer needs and those accomplished through network remodel. However, the market reacts negatively to SCRs aiming at cutting costs, improving poor performance, and those implemented through network trim. Finally, the cross-sectional analysis indicates that shareholders prefer firms operating in more competitive or faster-growing industries and those adopting an expansionist strategy than those adopting a streamlining strategy.

Originality/value

Our study provides managers with valuable insights into when firms can benefit from initiating SCRs not only by examining the purposes and actions of SCRs but also by examining the industry- and strategy-specific moderators. Our study illuminates the conditions under which SCR will positively affect shareholder value. Additionally, this study contributes to the existing literature by deepening the understanding of the impact of supply chain decisions on firm performance and identifying the marginal conditions under which the stock market will react positively to SCR announcements.

供应链改造公告对股东价值的影响
目的供应链改造(SCR)是企业在快速变化的环境中改善供应链运营的一项重要战略。本研究的目的是揭示 SCR 对股东价值的影响。设计/方法/途径本研究基于信号理论和 2013 年至 2018 年美国上市公司发布的 184 份 SCR 公告,采用事件研究方法,对三个问题进行了实证研究:研究结果首先,我们的研究结果表明,SCR 的主要驱动因素是公司前期业绩不佳、首席执行官更替和外部控制威胁(ECTs)。其次,股票市场青睐旨在满足客户需求的 SCR 和通过网络改造实现的 SCR。然而,市场对旨在削减成本、改善不佳业绩以及通过网络改造实现的 SCR 反应消极。最后,横截面分析表明,与采取精简战略的企业相比,股东更青睐竞争更激烈或增长更快的行业中的企业,以及采取扩张战略的企业。 原创性/价值我们的研究不仅通过考察 SCR 的目的和行动,还通过考察特定行业和战略的调节因素,为管理者提供了关于企业何时可以从启动 SCR 中获益的宝贵见解。我们的研究阐明了 SCR 对股东价值产生积极影响的条件。此外,本研究还加深了对供应链决策对公司业绩影响的理解,并确定了股票市场会对 SCR 公告做出积极反应的边际条件,从而为现有文献做出了贡献。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
8.20
自引率
8.70%
发文量
126
期刊介绍: ■In-depth studies of major issues ■Operations management ■Financial management ■Motivation ■Entrepreneurship ■Problem solving and proactivity ■Serious management argument ■Strategy and policy issues ■Tactics for turning around company crises Management Decision, considered by many to be the best publication in its field, consistently offers thoughtful and provocative insights into current management practice. As such, its high calibre contributions from leading management philosophers and practitioners make it an invaluable resource in the aggressive and demanding trading climate of the Twenty-First Century.
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