This paper investigates how supply chain management (SCM) efficiency affects the value investors attach to the change in a company's inventory holdings. Based on a large number of U.S. firms from 1971 to 2013, we find that, on average, one dollar of inventory change is valued at $0.507 in the...

The literature suggests that the presence of a labor union poses operational risk for firms by reducing operating flexibility. We posit that managers stockpile inventory in response to their heightened operational risk, such as potential strikes, so that managers maintain bargaining power in...

We examine whether managers stockpile excess inventory after experiencing natural disasters. Using major disasters in the U.S. between 1993 and 2018, we document that firms located within a disaster area stockpile excess inventory after experiencing a disaster. The effect is stronger when a...