Supply Chain Risk: Measurement and Real Effects

68 Pages Posted: 17 May 2023 Last revised: 18 May 2023

See all articles by Najah Attig

Najah Attig

Dalhousie University

Abdlmutaleb Boshanna

Dalhousie University

Date Written: May 17, 2022

Abstract

We use Natural Language Processing to measure supply chain risk (SCR) faced by US firms, as expressed in narratives of quarterly earnings conference calls. We show that exposure to SCR reached unprecedented levels during COVID-19. The effect of COVID-19 on SCR is more pronounced in firms with less profitable operations, a greater dispersion of analyst forecasts, increased complexity, more financial constraints and those in industries more vulnerable to supply chain disruptions. We document a negative effect of SCR on conference call short-term returns and future profitability. High-SCR firms are also associated with longer cash conversion cycles and more ESG overselling.

Keywords: supply chain, supply chain risk, textual analysis, earnings calls, corporate social responsibility, disclosure

Suggested Citation

Attig, Najah and Boshanna, Abdlmutaleb, Supply Chain Risk: Measurement and Real Effects (May 17, 2022). Available at SSRN: https://ssrn.com/abstract=4451609 or http://dx.doi.org/10.2139/ssrn.4451609

Najah Attig (Contact Author)

Dalhousie University ( email )

Rowe School of Business
6100 University Avenue
Halifax, Nova Scotia B3H 4R2
Canada
902-494-7486 (Phone)

HOME PAGE: http://scholar.google.ca/citations?user=J53887sAAAAJ&hl=en

Abdlmutaleb Boshanna

Dalhousie University ( email )

6100 University Avenue
Halifax, Nova Scotia
Canada

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