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The impact of governmental COVID‐19 measures on manufacturers' stock market valuations: The role of labor intensity and operational slack
This study investigates the impact of the Chinese government's Level I emergency response policy on manufacturers' stock market values. We empirically examine the roles of human resource dependence (labor intensity) and operational slack within the context of supply chain resilience. Throu...
Autores principales: | , , , |
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Formato: | Online Artículo Texto |
Lenguaje: | English |
Publicado: |
Wiley Periodicals, Inc.
2022
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Materias: | |
Acceso en línea: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9537894/ http://dx.doi.org/10.1002/joom.1207 |
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author | Chen, Lujie Li, Taiyu Jia, Fu Schoenherr, Tobias |
author_facet | Chen, Lujie Li, Taiyu Jia, Fu Schoenherr, Tobias |
author_sort | Chen, Lujie |
collection | PubMed |
description | This study investigates the impact of the Chinese government's Level I emergency response policy on manufacturers' stock market values. We empirically examine the roles of human resource dependence (labor intensity) and operational slack within the context of supply chain resilience. Through an event study of 1357 Chinese manufacturing companies, we find that the government's emergency response policy triggered statistically significant positive abnormal returns for manufacturers. However, we also find that there exists a negative impact on abnormal returns for manufacturers that are labor‐intensive, giving rise to arguments based in resource dependence theory. In addition, the results indicate the positive role played by operational slack (e.g., financial and inventory slack) in helping manufacturers maintain operations and business continuity, effectively mitigating risks and adding to the manufacturers' resilience. With these findings, we contribute to operations and supply chain management by calling attention to the importance of human resource redundancy while at the same time identifying financial slack and inventory as supply chain resilience strategies that were able to mitigate pandemic‐related risks. |
format | Online Article Text |
id | pubmed-9537894 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2022 |
publisher | Wiley Periodicals, Inc. |
record_format | MEDLINE/PubMed |
spelling | pubmed-95378942022-10-11 The impact of governmental COVID‐19 measures on manufacturers' stock market valuations: The role of labor intensity and operational slack Chen, Lujie Li, Taiyu Jia, Fu Schoenherr, Tobias Journal of Operations Management Research Articles This study investigates the impact of the Chinese government's Level I emergency response policy on manufacturers' stock market values. We empirically examine the roles of human resource dependence (labor intensity) and operational slack within the context of supply chain resilience. Through an event study of 1357 Chinese manufacturing companies, we find that the government's emergency response policy triggered statistically significant positive abnormal returns for manufacturers. However, we also find that there exists a negative impact on abnormal returns for manufacturers that are labor‐intensive, giving rise to arguments based in resource dependence theory. In addition, the results indicate the positive role played by operational slack (e.g., financial and inventory slack) in helping manufacturers maintain operations and business continuity, effectively mitigating risks and adding to the manufacturers' resilience. With these findings, we contribute to operations and supply chain management by calling attention to the importance of human resource redundancy while at the same time identifying financial slack and inventory as supply chain resilience strategies that were able to mitigate pandemic‐related risks. Wiley Periodicals, Inc. 2022-08-21 /pmc/articles/PMC9537894/ http://dx.doi.org/10.1002/joom.1207 Text en © 2022 The Authors. Journal of Operations Management published by Wiley Periodicals LLC on behalf of Association for Supply Chain Management, Inc. https://creativecommons.org/licenses/by-nc-nd/4.0/This is an open access article under the terms of the http://creativecommons.org/licenses/by-nc-nd/4.0/ (https://creativecommons.org/licenses/by-nc-nd/4.0/) License, which permits use and distribution in any medium, provided the original work is properly cited, the use is non‐commercial and no modifications or adaptations are made. |
spellingShingle | Research Articles Chen, Lujie Li, Taiyu Jia, Fu Schoenherr, Tobias The impact of governmental COVID‐19 measures on manufacturers' stock market valuations: The role of labor intensity and operational slack |
title | The impact of governmental COVID‐19 measures on manufacturers' stock market valuations: The role of labor intensity and operational slack |
title_full | The impact of governmental COVID‐19 measures on manufacturers' stock market valuations: The role of labor intensity and operational slack |
title_fullStr | The impact of governmental COVID‐19 measures on manufacturers' stock market valuations: The role of labor intensity and operational slack |
title_full_unstemmed | The impact of governmental COVID‐19 measures on manufacturers' stock market valuations: The role of labor intensity and operational slack |
title_short | The impact of governmental COVID‐19 measures on manufacturers' stock market valuations: The role of labor intensity and operational slack |
title_sort | impact of governmental covid‐19 measures on manufacturers' stock market valuations: the role of labor intensity and operational slack |
topic | Research Articles |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9537894/ http://dx.doi.org/10.1002/joom.1207 |
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