The Research On The Abnormal Return,Spillover Effect And Contagion Effect Of Supply Chain Revamping

For the first time that “Modern supply chain” was proposed in the report of 19 th National Congress of the Communist Party of China,and the report pointed out to cultivate new growth points and form new kinetic energy in modern supply chain and other fields.The 5th Plenary Session of the 19 th Central Committee of the Communist party of China further put forward that promoting the modernization level of the industrial chain and supply chain as the key task of accelerating the development of a modern industrial system and consolidating and strengthening the foundation of the real economy.As a result,the development of modern supply chain and the improvement of supply chain management have reached the height of national strategy.As a matter of fact,there's plenty of room for supply chain management to improve.Extensive management and fine management coexist,traditional management and digital management mode are simultaneously developed,and there're urgent needs for improving the level of supply chain management.Consequently,supply chain revamping not only meets the key demand of the national economic development in the context of the new normal,but also an inevitable strategy for companies to improve the level of supply chain management,as well as the only way to accomplish modern supply chain management.However,the existing research on the connotation of supply chain revamping is not clear,the understandings to the scope,breadth and depth of its impact are not comprehensive,the moderating mechanism of key situational factors is not revealed,thus it is difficult to provide critical insights for Chinese companies to implement supply chain revamping initiatives,improve level of supply chain management,nor to offer sufficient theoretical supports and practical guidance to develop modern supply chain.Based on this practical and theoretical background,this dissertation is grounded in the Chinese context,the empirical research methodologies are employed,we firstly define the supply chain revamping,based on which we collect the supply chain revamping announcements from Chinese A-Share listed companies from 2013 to 2018,and establish a sample database.Second,we study the impact of supply chain revamping in the company's perspective,and provide empirical evidence for companies to implement supply chain revamping.Meanwhile,we study the externality of supply chain revamping in the supply chain's and industry's perspective,and provide practical guidance for companies to enhance the supply chain partnership management and to select proper coopetition strategies.The specific research content of this dissertation includes the following parts:First,based on 1283 supply chain revamping announcements from Chinese A-Share listed companies,the first research module uses event study and regression methodologies to analyze the abnormal return and abnormal operating performance of supply chain revamping in the perspective of announcing firm.The results indicate that supply chain revamping can significantly improve companies' market value,long-term operating performance.In the meantime,the change in the market value is strongly affected by the firm operating performance,firm growth potential,industry competition and industry variability of demand.Second,based on the previously mentioned sample's 637 suppliers and 327 customers,which are domestic and foreign listed companies,the second research module employs event study and regression methodologies to analyze the spillover effect,which includes the market value effect of suppliers and customers,of supply chain revamping in the perspective of supplier partners.The results reveal that supply chain revamping has a strong negative customer spillover effect,which is significantly affected by the size of investment and the market share of the announcing firm.Though the overall supplier spillover effect is insignificant,the certain sized announcing firms can have significant supplier spillover effect.Finally,based on 75700 companies in the same industry as that of the announcing firms,the event study and regression methodologies are conducted in the third research module to analyze the contagion and competitive effect of supply chain revamping,so as to study the market value effect of supply chain revamping in the industry firms' perspective.The results suggest that supply chain revamping has significant contagion effect on its industry companies,where industry companies can benefit from supply chain revamping as well.Furthermore,contagion effect is significantly affected by the announcing firm's abnormal return,announcing firm's financial leverage,industry competition,industry firm's size and industry firm's growth opportunity.The contribution of this dissertation comprises the following three folds:First,this dissertation quatifies the abnormal return and abnormal operating performance of supply chain revamping,proposed the key factors that can affect abnormal retruns.From announcing firms' perspective,this dissertation reveals and quantifies the relationship between supply chain revamping and market value and operating performance of the announcing firm.This dissertation enriches and develops the research on the abnormal return and abnormal operating performance of supply chain revamping,as well as offers companies theoretical basis for implementing supply chain revamping.Second,this dissertation investigates the supplier and customer spillover effects of supply chain revamping,finds the important factors that can affect spillover effects.From supply chain partners' perspective,this dissertation reveals and quantifies the relationship between supply chain revamping and market value effect of supply chain partners.This dissertation enriches and develops the research on the spillover effect of supply chain revamping,meanwhile provides empirical evidence to companies for strengthening supply chain partnership management.Third,this dissertation studies the industry contagion and competitive effect of supply chain revamping.From industry firms' perspective,this dissertation reveals and quantifies the relationship between supply chain revamping and market value effect of industry firms.This dissertation enriches and develops the research on the contagion and competitive effect of supply chain revamping,while provides companies with decision supports for the selection of co-opetition strategies.In conclusion,this dissertation is based on the context of China's vigorous development of modern supply chain,clarifies the internal and external effects of supply chain revamping,understands its influence mechanism on companies,supply chain partners and industry firms,investigates and verifies the moderating mechanism of key situational factors.This dissertation provides strong and sufficient theoretical supports and practical guidance to Chinese companies to implement supply chain revamping under the new normal,improve the level of supply chain management,and promote the level of modernization of supply chain.