TY - JOUR
T1 - Examining supply chain vulnerability via an analysis of ESG-prioritized firms amid the Russian-Ukrainian conflict
AU - Tsang, Y. P.
AU - Fan, Youqing
AU - Feng, Z. P.
AU - Li, Yanlin
PY - 2024/1/1
Y1 - 2024/1/1
N2 - This research study explores the impact of the ongoing Russian-Ukrainian conflict on ESG-enabled global supply chains, resulting in disruption to worldwide industries. The conflict has caused product shortages, food scarcity, and significantly impacted the global economy. From the extant literature, there is a lack of understanding about the effect of the conflict on different industries from a supply chain perspective, as well as the ESG-prioritized companies. Therefore, this study aims to evaluate the influence of the Russian-Ukrainian conflict on the performance of companies with respect to different regions and industries of their upstream and downstream customers. The top-100 companies in the S&P 500 index which are actively participating in the ESG development are selected and grouped according to customer regions and industries, and the event study analysis is applied to evaluate abnormal returns from stock prices due to the disruption events. Through the empirical analysis, no matter how the ESG-prioritized companies are grouped according to their supply chain structures, it is found that the occurrence of companies obtaining the abnormally high stock return is higher than the occurrence of the opposite. Moreover, the active involvement in ESG disclosure and environmental management demonstrates significant results to withstand disruptions to their supply chains. The findings in this study contribute to a growing body of ESG-related business research, implying that companies which prioritize ESG policies may be better equipped to manage supply chain disruptions during crises.
AB - This research study explores the impact of the ongoing Russian-Ukrainian conflict on ESG-enabled global supply chains, resulting in disruption to worldwide industries. The conflict has caused product shortages, food scarcity, and significantly impacted the global economy. From the extant literature, there is a lack of understanding about the effect of the conflict on different industries from a supply chain perspective, as well as the ESG-prioritized companies. Therefore, this study aims to evaluate the influence of the Russian-Ukrainian conflict on the performance of companies with respect to different regions and industries of their upstream and downstream customers. The top-100 companies in the S&P 500 index which are actively participating in the ESG development are selected and grouped according to customer regions and industries, and the event study analysis is applied to evaluate abnormal returns from stock prices due to the disruption events. Through the empirical analysis, no matter how the ESG-prioritized companies are grouped according to their supply chain structures, it is found that the occurrence of companies obtaining the abnormally high stock return is higher than the occurrence of the opposite. Moreover, the active involvement in ESG disclosure and environmental management demonstrates significant results to withstand disruptions to their supply chains. The findings in this study contribute to a growing body of ESG-related business research, implying that companies which prioritize ESG policies may be better equipped to manage supply chain disruptions during crises.
UR - https://hdl.handle.net/1959.7/uws:74674
U2 - 10.1016/j.jclepro.2023.139754
DO - 10.1016/j.jclepro.2023.139754
M3 - Article
SN - 0959-6526
VL - 434
JO - Journal of Cleaner Production
JF - Journal of Cleaner Production
M1 - 139754
ER -
