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Coronavirus disease outbreak and supply chain disruption: Evidence from Taiwanese firms in China

ABSTRACT: Graphical abstract This study applies an empirical analysis to examine whether supply chain disruption is caused by the outbreak of the coronavirus disease (COVID-19) that was first reported in Wuhan, China, on December 31, 2019. The study’s findings indicate a link between the COVID-19 outbreak and the disruption of logistics and supply chains along with negative cumulative abnormal returns within Taiwanese firms manufacturing products in China and marketing them globally. This is the first study to examine the outbreak of the COVID-19 and the disruption of the supply chain and its effect on the stock market. The empirical results provide insights for business management in reconsidering their global supply chain strategies for the risk of disruption caused by similar epidemics occurs in the future.

SUBMITTER: Tang C

PROVIDER: S-EPMC7680019 | biostudies-literature | 2020 Nov

REPOSITORIES: biostudies-literature

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