scholarly journals Supply Chain Disruptions: Evidence from the Great East Japan Earthquake

2016 ◽  
Author(s):  
Vasco M. Carvalho ◽  
Makoto Nirei ◽  
Yukiko U. Saito ◽  
Alireza Tahbaz-Salehi
Keyword(s):  
Supply Chain ◽  
Great East Japan Earthquake ◽  
Supply Chain Disruptions

scholarly journals Supply Chain Disruptions: Evidence from the Great East Japan Earthquake*

2020 ◽  
Author(s):  
Vasco M Carvalho ◽  
Makoto Nirei ◽  
Yukiko U Saito ◽  
Alireza Tahbaz-Salehi
Keyword(s):  
Supply Chain ◽  
Great East Japan Earthquake ◽  
Gdp Growth ◽  
Production Networks ◽  
Input Output ◽  
Supply Chain Disruptions ◽  
Real Gdp ◽  
Propagation Effects ◽  
Macroeconomic Impact

Abstract Exploiting the exogenous and regional nature of the Great East Japan Earthquake of 2011, this paper provides a quantification of the role of input-output linkages as a mechanism for the propagation and amplification of shocks. We document that the disruption caused by the disaster propagated upstream and downstream along supply chains, affecting the direct and indirect suppliers and customers of disaster-stricken firms. Using a general equilibrium model of production networks, we then obtain an estimate for the overall macroeconomic impact of the disaster by taking these propagation effects into account. We find that the earthquake and its aftermaths resulted in a 0.47 percentage point decline in Japan’s real GDP growth in the year following the disaster.

Stock Market Reaction to Supply Chain Disruptions from the 2011 Great East Japan Earthquake

2020 ◽  
Vol 22 (4) ◽  
pp. 683-699 ◽  
Author(s):  
Kevin B. Hendricks ◽  
Brian W. Jacobs ◽  
Vinod R. Singhal
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Shareholder Value ◽  
Nuclear Industry ◽  
Problem Definition ◽  
Great East Japan Earthquake ◽  
Global Supply Chains ◽  
Supply Chain Disruptions ◽  
Business Press ◽  
Japanese Firms

Problem definition: This paper provides empirical evidence on the effect of the 2011 Great East Japan Earthquake (GEJE) on the financial performance of firms. Academic/practical relevance: The GEJE was characterized as the most significant disruption ever for global supply chains. In its aftermath, there was a great deal of debate about the risks and vulnerabilities of global supply chains, and there were calls to redesign and restructure supply chains. Methodology: We empirically estimate the effect of the GEJE on the stock prices of firms. Our analyses are based on a global sample of 470 firms collected from articles and announcements in the business press that identify affected firms, as well as 382 firms that are not mentioned in the business press but are in industries potentially subject to contagion or competitive effects. Results: We estimate that firms experiencing supply chain disruptions as a result of the GEJE lost on average 5.21% of their shareholder value during the one-month period after the GEJE. For Japanese firms, the effect was much more severe with an average 9.32% loss in shareholder value. Non-Japanese firms averaged a 3.73% loss in shareholder value. We also find that upstream and downstream supply chain propagation effects from the GEJE are negative, and the contagion effect on firms related to the nuclear industry is very negative. For firms in the rebuilding industries or competitors to firms affected by the GEJE, the competitive effect from the GEJE is positive. Managerial implications: The loss suffered by both Japanese firms and non-Japanese firms experiencing supply chain disruptions as a result of the GEJE is economically significant. Although the loss is more severe for firms whose operations were directly affected by the GEJE, it is also significant for firms who experienced indirect effects from their upstream and downstream supply chain partners, further confirming the importance of supply chain risk mitigation strategies.

scholarly journals Supply Chain Disruptions: Evidence from the Great East Japan Earthquake

2016 ◽  
Author(s):  
Vasco M. Carvalho ◽  
Makoto Nirei ◽  
Yukiko U. Saito ◽  
Alireza Tahbaz-Salehi
Keyword(s):  
Supply Chain ◽  
Great East Japan Earthquake ◽  
Supply Chain Disruptions

The roles of prior experience and the location on the severity of supply chain disruptions

2021 ◽  
pp. 1-20
Author(s):  
Milad Baghersad ◽  
Christopher W. Zobel ◽  
Paul Benjamin Lowry ◽  
Sutirtha Chatterjee
Keyword(s):  
Supply Chain ◽  
Prior Experience ◽  
Supply Chain Disruptions

The Roles of Prior Experience and the Location on the Severity of Supply Chain Disruptions

2021 ◽  
Author(s):  
Milad Baghersad ◽  
Christopher W. Zobel ◽  
Sutirtha Chatterjee ◽  
Paul Benjamin Lowry
Keyword(s):  
Supply Chain ◽  
Prior Experience ◽  
Supply Chain Disruptions
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