Insight

Chain reaction

Firms with sustainable and transparent supply chain management are perceived to be less risky and most valuable

Successfully managing the supply chain is perhaps most essential for firms to ensure a smooth flow of goods to consumers. Researchers Claude Chereau and Carolin Schellhorn find that firms with sustainable and transparent supply chain management are perceived to be less risky and most valuable by investors. Disclosing information about environmental, social and government risks improves supply chains, which is likely to reduce behavioral volatilities and improve investors’ risk-return choices, asset valuations and resource allocations.

Title: Supply Chain Management and Investment Risk

Source: Social Science Research Network

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