<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>Supply chain risk is a strategic issue for managing multinational companies, and Covid-19 has shown the relevance of this type of risk for the firm’s survival probability. The market may perceive the choice of replacing some of the main customers or suppliers as an increase or a decrease of the risk based on the features of the new supply chain members, and markets tend to penalize companies that increase their exposure to unaffordable events. During the pandemic, many supply chains suffered from glitches and companies were obliged to redefine their network by selecting their new strategic customers and/or suppliers.</p>
<p>The paper evaluates the supply chain composition strategies of a set of multinational companies based in the US during the last decade. It highlights the differences in supply chain management behavior before and during the pandemic. Data collected allow testing the impact on the stock market performance of modifying the supply chain network by adding new members that may have a different level of risk. Results show that the market reaction to supply chain updates changed after the Covid-19, and nowadays there is greater attention on the credit risk of the new companies entering the supply chain.</p>
</abstract>

Supply chain risk is a strategic issue for managing multinational companies, and Covid-19 has shown the relevance of this type of risk for the firm’s survival probability. The market may perceive the choice of replacing some of the main customers or suppliers as an increase or a decrease of the risk based on the features of the new supply chain members, and markets tend to penalize companies that increase their exposure to unaffordable events. During the pandemic, many supply chains suffered from glitches and companies were obliged to redefine their network by selecting their new strategic customers and/or suppliers.
The paper evaluates the supply chain composition strategies of a set of multinational companies based in the US during the last decade. It highlights the differences in supply chain management behavior before and during the pandemic. Data collected allow testing the impact on the stock market performance of modifying the supply chain network by adding new members that may have a different level of risk. Results show that the market reaction to supply chain updates changed after the Covid-19, and nowadays there is greater attention on the credit risk of the new companies entering the supply chain.

Supply chain dynamics after the COVID-19 pandemic and stock market performance: Evidence from the US

Department of Law, Economics, Politics and Modern languages Via Pompeo Magno

ECONOMICS

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Supply chain risk is a strategic issue for managing multinational companies, and Covid-19 has shown the relevance of this type of risk for the firm’s survival...

Supply chain dynamics after the COVID-19 pandemic and stock market performance: Evidence from the US

Publié en ligne: 12 déc. 2022

Pages: 45 - 62

Reçu: 14 mars 2022

Accepté: 30 juin 2022

DOI: https://doi.org/10.2478/eoik-2022-0016

Mots clés
Supply chain, Pandemic, Stock performance

© 2022 Lucia Gibilaro et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Supply chain dynamics after the COVID-19 pandemic and stock market performance: Evidence from the US

Publié en ligne: 12 déc. 2022

Pages: 45 - 62

Reçu: 14 mars 2022

Accepté: 30 juin 2022

DOI: https://doi.org/10.2478/eoik-2022-0016

Mots clésSupply chain, Pandemic, Stock performance

© 2022 Lucia Gibilaro et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Mots clés
Supply chain, Pandemic, Stock performance