TY - JOUR
T1 - Effect of supply chain strategic collaboration announcements on shareholder value
T2 - an empirical investigation from China
AU - Liu, Weihua
AU - Wei, Wanying
AU - Si, Cheng
AU - Xie, Dong
AU - Chen, Lujie
N1 - Publisher Copyright:
© 2020, Emerald Publishing Limited.
PY - 2020/6/19
Y1 - 2020/6/19
N2 - Purpose: This study empirically examines the impact of announcements on supply chain strategic collaboration (SCSC) on companies' shareholder value. Design/methodology/approach: This study analyzes changes in shareholder value of companies listed in China based on data of 208 SCSC announcements. The signaling theory is applied to determine correlation among SCSC announcements and the market. An event study is used to estimate the stock market reaction to SCSC announcements. The common market model estimates stock abnormal returns after the event. The least squares method and regression model calculate the model parameter value. Findings: There is a positive and statistically significant relationship between SCSC announcement and shareholder value. Market reaction to product development collaboration is significantly higher than to technology-sharing collaboration, market collaboration, and other SCSC types. The market reacts more positively to suppliers and companies with greater supply chain control power than to buyers and companies with lower control power. Announcements from the service supply chain can lead to stronger market reactions than those from manufacturing supply chains. Practical implications: The findings provide a systematic assessment of how SCSC announcements contribute to firms' shareholder value. The result provides a benchmark of value promotion that can be expected from SCSC announcements. Originality/value: This study fills the research gap that using secondary data to assess changes in companies’ shareholder value caused by SCSC announcements and firstly examines these changes by constructing the signaler–signal–receiver progress based on signaling theory. The research results provide a new reference and inspiration for deeper understanding of the impact mechanism of SCSC. Furthermore, this study contributes to the development of the signaling theory using an empirical study in an emerging market, China.
AB - Purpose: This study empirically examines the impact of announcements on supply chain strategic collaboration (SCSC) on companies' shareholder value. Design/methodology/approach: This study analyzes changes in shareholder value of companies listed in China based on data of 208 SCSC announcements. The signaling theory is applied to determine correlation among SCSC announcements and the market. An event study is used to estimate the stock market reaction to SCSC announcements. The common market model estimates stock abnormal returns after the event. The least squares method and regression model calculate the model parameter value. Findings: There is a positive and statistically significant relationship between SCSC announcement and shareholder value. Market reaction to product development collaboration is significantly higher than to technology-sharing collaboration, market collaboration, and other SCSC types. The market reacts more positively to suppliers and companies with greater supply chain control power than to buyers and companies with lower control power. Announcements from the service supply chain can lead to stronger market reactions than those from manufacturing supply chains. Practical implications: The findings provide a systematic assessment of how SCSC announcements contribute to firms' shareholder value. The result provides a benchmark of value promotion that can be expected from SCSC announcements. Originality/value: This study fills the research gap that using secondary data to assess changes in companies’ shareholder value caused by SCSC announcements and firstly examines these changes by constructing the signaler–signal–receiver progress based on signaling theory. The research results provide a new reference and inspiration for deeper understanding of the impact mechanism of SCSC. Furthermore, this study contributes to the development of the signaling theory using an empirical study in an emerging market, China.
KW - Chinese listed companies
KW - Empirical research
KW - Stock market reaction
KW - Supply chain strategic collaboration
UR - http://www.scopus.com/inward/record.url?scp=85086591243&partnerID=8YFLogxK
U2 - 10.1108/IJOPM-05-2019-0368
DO - 10.1108/IJOPM-05-2019-0368
M3 - Article
AN - SCOPUS:85086591243
SN - 0144-3577
VL - 40
SP - 389
EP - 414
JO - International Journal of Operations and Production Management
JF - International Journal of Operations and Production Management
IS - 4
ER -