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The financial impacts of environmental violations on supply chains: Evidence from an emerging market

Research output: Contribution to Journal/MagazineJournal articlepeer-review

Article number102345
<mark>Journal publication date</mark>1/07/2021
<mark>Journal</mark>Transportation Research Part E: Logistics and Transportation Review
Number of pages18
Publication StatusPublished
Early online date10/05/21
<mark>Original language</mark>English


Based on 100 environmental violations occurring in China in 2018 and matched supply chain relationship data obtained from Bloomberg, our research shows that environmental violations have negative financial impacts on not only the violators but also their supply chain partners including customers and suppliers. Nevertheless, environmental transparency and supply chain diversity help these supply chain partners mitigate the negative effects arising from the environmental violations. While the mitigating role of environmental transparency is more pronounced for customers than suppliers, supply chain diversity has a similar mitigating effect for both customers and suppliers.