HOW LOGISTICS PERFORMANCE RESHAPES THE MOVEMENT OF STOCKS IN THE CONTEXT OF CLIMATE CHANGE?

Khaled El Sakty (), Mohamed Abdelraouf () and Samira Allam ()
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Khaled El Sakty: Arab Academy for Science and Technology and Maritime Transport, Egypt
Mohamed Abdelraouf: Badr University, Egypt
Samira Allam: Ain Shams University, Badr University, Egypt

Business Logistics in Modern Management, 2023, vol. 23, 43-62

Abstract: Supply chains networks are at risk due to the climate change in terms of reputation, functionality, and safety. Increasing regulations, market forces, and stakeholder demands are paving over the decarbonization of supply chains, which has evident consequences for supply chain management. Therefore, the motivation of this research is to use logistics performance indicators to analyse the financial effects on the stock market. A case study of the Seven Leading Industrial Countries was used for this purpose. Autoregressive Distributed Lag (ARDL) model was used. The research sample was selected based on the industrial stock indices for these countries during the time period from the beginning of 2006 to the end of 2022. It is found that the logistics policy regulations indicators account for 26.28% of the impact on the returns of the industrial indicators, while the performance results of logistics services indicators contribute to 38.35% of the impact on the returns of industrial indicators. As originality, the current study succeeded in confirming that the importance of these countries is not only due to the fact that they are described as the Seven Leading Industrial Countries, but rather in how they deal with logistical challenges and developed them during the study period. This research adds to the literature on climate change's financial effects and sheds light on the intricate linkages between two separate fields which are Finance and Supply chain, and also between logistics performance, supply chains, and stock market returns. Using indirect way to illustrate how the impact of climate change can reach financial markets.

Keywords: Climate Change; Logistics Performance Index; Stock markets (search for similar items in EconPapers)
Date: 2023
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