Effect of supply chain strategic collaboration announcements on shareholder value: an empirical investigation from China

Abstract

PurposeThis study empirically examines the impact of announcements on supply chain strategic collaboration (SCSC) on companies' shareholder value.Design/methodology/approachThis 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.FindingsThere 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 implicationsThe 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/valueThis 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.

Blockchain announcements and stock value: a technology management perspective

“…This is a dummy variable indicating the industry type of the company. The service industry is an industry that focuses on intangible service provision, including wholesale and retail, software and IT service, etc., and the variable is equal to 1 if the firm is a service firm; the manufacturing industry involves the supply, processing, production and distribution of tangible products, and the variable is equal to 0 if the firm is a manufacturing firm (Liu et al. , 2020).…”

“…The ability to establish relationships between enterprises and the outside world is a kind of intangible resource, which is difficult for competitors to observe and imitate (Galbreath and Galvin, 2006). Therefore, partnership relationships are an important intangible resource for enterprises and can improve enterprise performance (Cao and Zhang, 2011;Liu et al, 2020;Zheng et al, 2021).…”

“…4.2.2.8 Financial leverage (X 8 ). This is a numerical variable that reflects the level of a firm's financial risk, defined as the ratio of a firm's earnings before interest and tax to profit before tax in the last accounting year before the corresponding announcement (Liu et al, 2020).…”

“…The selected blockchain announcements mainly focus on three aspects: partnerships, technological innovation and strategic plan. Previous studies have suggested that these factors can influence stock market value separately (Ravichandran and Lertwongsatien, 2005; Liu et al. , 2020).…”

Effect of intelligent logistics transformation announcements on shareholder value: Evidence from Chinese listed firms

“…Firms release ILT announcements to draw the attention of investors and send positive signals of development to the market. For listed firms, the stock abnormal return is an important index to measure the change of shareholder value (Kalaignanam et al, 2013; Robinson et al, 2015), which reflects market investors' expectations of future firm performance (Liu, Wei, et al, 2020). A quantitative analysis of stock abnormal returns brought by ILT announcements and of the main factors that affect abnormal returns can effectively reflect the impact of ILT announcements on enterprise shareholder value and thus guide the decision making of managers.…”