The financial impacts of environmental violations on supply chains: Evidence from an emerging market

Yangchun Xiong, Hugo K.S. Lam, Qiaoxuan Hu, Rachel W.Y. Yee and Constantin Blome

Transportation Research Part E: Logistics and Transportation Review, 2021, vol. 151, issue C

Abstract: Based on 100 environmental violations occurring in China in 2018 and matched supply chain relationship data obtained from Bloomberg, our research shows that environmental violations have negative financial impacts on not only the violators but also their supply chain partners including customers and suppliers. Nevertheless, environmental transparency and supply chain diversity help these supply chain partners mitigate the negative effects arising from the environmental violations. While the mitigating role of environmental transparency is more pronounced for customers than suppliers, supply chain diversity has a similar mitigating effect for both customers and suppliers.

Keywords: Environmental violation; Emerging market; Environmental transparency; Supply chain diversity; Market value (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (9)

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DOI: 10.1016/j.tre.2021.102345

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