Northwestern University
Shareholder value implications of supply chain ESG risk management: Evidence from negative incidents
October 23, 2023 – 05:15 – 06:15 PM (CEST)
This event will take place online only. To join virtually, please register in advance using this link.
Speaker Bio
Professor Aaron Yoon is interested in how to account for a firm's Environment Social Governance (ESG) efforts and integrate the information into portfolio decision making process. According to the Financial Times, his research on ESG was a turning point on how investors viewed and integrated ESG information and the methodologies suggested in his works have been widely implemented by asset managers. His work has been regularly cited in other outlets such as Bloomberg, Forbes, The New York Times, and The Wall Street Journal.
He also won multiple awards for his research and teaching, including the Responsible Business Education Award from the Financial Times, Best 40 Under 40 Professors Recognition from Poets & Quants, Crowell Prize for Best Paper in Quantitative Investing from PanAgora Asset Management, Chair's Core Teaching Award from Northwestern Kellogg, Best Dissertation Award from the American Accounting Association, and Graham and Dodd Scroll Award from the CFA Institute.
Professor Yoon earned his Doctorate from Harvard University and his master’s and bachelor’s from Northwestern University. Prior to academia, he worked as an equities salestrader and a research analyst at Credit Suisse.
Seminar Abstract
We examine the shareholder value implications of supply chain ESG risk management. We find that firms with fewer supply chain ESG incidents exhibit higher future stock returns and accounting performance. Robust supply chain ESG risk management creates value by (i) attracting pro-social stakeholders, (ii) enhancing supply chain stability, and (iii) hedging regulatory risk. Further, the lack of supply chain transparency prevents the stock market from immediately and fully capitalizing the value of supply chain ESG risk management. Overall, we highlight the net benefits of robust supply chain ESG risk management and inform regulators and investors about the importance of relevant disclosure.
Admission information
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