Supply Chain Disruptions and Stock Prices

Supply chain disruptions typically hurt stock prices, particularly if the disruption is caused by a natural disaster. While supply chains in the United States suffer from a wide range of supply chain disruptions induced by hurricanes, the impact of these disruptions on stock prices remains unexplored, even though the annual average damage in the US due to hurricanes is $54bn of which $9bn is to businesses. This book explores, classifies, and connects natural disasters, supply chain disruption (SCD), and firm financial performance. It identifies influencing factors and how they impact the effect of hurricanes on stock prices. It defines a statistical model to quantify the effect of hurricanes on stock prices and provides guidelines to managers who need to decide how to communicate supply chain disruptions to their customers and shareholders. It will be of great interest to scholars and students in supply chain management, disaster management, and finance. Priscilla Schelp is an award-winning Founder and CEO at networkx. She has a global professional background in risk and crisis management consulting. She completed a PhD in Supply Chain Risk Management at Cranfield University, UK, and has teaching experience in IT project management at DHBW Germany. Heather Skipworth is Professor of Supply Chain Management at Cranfield University, UK, where she is also Director of the Agile Supply Chain Research Club. Her specific areas of research interest include agile and responsive supply chains and supply chain risk and resilience. Emel Aktas is Professor of Supply Chain Analytics at Cranfield University, UK. She is an associate editor of the Journal of the Operational Research Society, and she co-edits the Palgrave Studies in Logistics and Supply Chain Management book series. Beate Vieth is a postdoctoral researcher at Ludwig-Maximilians University, Munich, Germany where she completed a PhD in Human Genomics. Her specific areas of research interest include the analysis of high-throughput sequencing data to compare the evolution of gene expression across primates.