JOURNAL OF APPLIED BUSINESS AND ECONOMICS
Effective Demand-Driven Supply Chain Management and Long-run Stock Performance
Author(s): Xun Li, Qun Wu, Clyde W. Holsapple
Citation: Xun Li, Qun Wu, Clyde W. Holsapple, (2017) "Effective Demand-Driven Supply Chain Management and Long-run Stock Performance ," Journal of Applied Business and Economics, Vol. 19, Iss.10, pp. 105-119
Article Type: Research paper
Publisher: North American Business Press
Abstract:
This paper examined the long-run stock price performance of firms with effective Demand-driven supply
chain management (DDSCM). We used AMR’s “Supply Chain Top 25” ranking to obtain a sample of
firms independently identified as top performing DDSCM firms. The results show that investing in the
portfolio of top DDSCM firms can generate significantly positive abnormal returns after controlling for a
variety of factors to discount alternative explanations. We also investigated buy-and-sell abnormal
returns and found that investors can earn significantly positive abnormal returns by simultaneously
buying a portfolio of top DDSCM firms and selling a portfolio of matching firms.