In this paper, using newly available CDS positions data compiled from DTCC and the supply chain hierarchical position obtained from networking methodology, we examine whether and how investors can use CDS contracts to manage the heightened operational risk due to upstream supply chain...

Supply chain failures and supply shortages have always been a matter of high risk. Especially when considering the scope and velocity of modern supply chains, small disturbances can cause immense damage. However, a framework for quantifying supply chain systemic risk is still missing.To address...

We examine two competing predictions regarding the impact of major customer firms' risk taking on that of their supplier firms. The bargaining power theory holds that when major customers take more risk to enhance their bargaining power and rent extraction ability, suppliers respond by also...

We explore the role of foreign directors in mitigating the effects of supply chain disruptions caused by economic policy uncertainty (EPU) spikes in their home countries. Using a large sample of global supply chain relationships of US manufacturing firms, we show that the likelihood of a US...

Currently volatility is inherent a supply chain. A business entity within the supply chain faces with demand fluctuations and many other problem situations that cause disruptions. Despite this supply chain should deliver goods or services at acceptable predefined levels of customer value, not...

Enterprise Risk Management (ERM) is a program that manages all firm risks in an integrated framework. In this study, we provide the first empirical evidence of how ERM affects firms’ day-to-day operations. Using hand-collected ERM data and inventory information, we examine whether ERM adoption...