A review of short-term event studies in operations and supply chain management

Li Ding, Hugo K.S. Lam, T.C.E. Cheng and Honggeng Zhou

International Journal of Production Economics, 2018, vol. 200, issue C, 329-342

Abstract: The short-term event study method, grounded in the Efficient Market Hypothesis, is one of the most widely used tools for quantifying the impact of a specific event on a firm's shareholder value. As the short-term event study method has been increasingly employed by researchers to investigate various operations and supply chain management (OSCM) events, it is timely to conduct a systematic review of the method to examine how it has been implemented in the OSCM literature and what could be improved to deploy it for future OSCM research. Analyzing 29 short-term event studies published in renowned OSCM journals between 1995 and 2017, we find that OSCM researchers generally follow the standard procedures in conducting event studies, but pay less attention to some methodological issues ranging from addressing the confounding events to expanding the event windows. Based on our analysis, we provide several recommendations for future event studies in OSCM, such as the opportunity for studying external events in the non-U.S. context, the caution of expanding the event windows, and the need to deal with the self-selection bias.

Keywords: Short-term event study; Shareholder value; Abnormal return; Operations management; Supply chain management; Literature review (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0925527318301610
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:200:y:2018:i:c:p:329-342

DOI: 10.1016/j.ijpe.2018.04.006

Access Statistics for this article

International Journal of Production Economics is currently edited by Stefan Minner

More articles in International Journal of Production Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().