The impact of logistics-manufacturing integration announcement on the stock market value: Evidence from China

Global production trends have increased supply chain complexity and highlighted the importance of logistics-manufacturing integration (LMI). Although stock market performance is a critical indicator for evaluating and supporting the LMI implementation, it remains unclear how LMI implementation affects a company’s stock market performance and which factors can moderate this impact. This study collects LMI implementation announcements of 181 companies (125 manufacturers and 56 third-party logistic providers) in China’s A-share market from October 2002 to September 2024. Using event study methodology to assess the impact of LMI implementation on companies’ stock market performance, the results show that the stock market reacts positively to the LMI implementation. Furthermore, we observe the moderating effects of four factors (i.e., specific asset investment, close partnerships, supply chain concentration and innovative logistics services) on the stock market reaction to manufacturers’ LMI implementation. Some interesting results include close partnerships hurt stock market performance of LMI-implementing companies; supply chain concentration has an inverted U-shaped relationship with the stock market performance. In addition, the post-hoc analysis demonstrates that LMI implementation has a positive impact on a company’s operational performance but may negatively affect its financial performance.