ESG Shocks in Global Supply Chains

Speaker： She Guoman (Assistant Professor, University of Hong Kong)

Host：Luo Dangxun, Professor, Lingnan College

Time and Date：14:30, Apr.14, 2023

Venue: MBA Building 202

Language: English + Chinese

Abstract:

We show that U.S. firms cut imports by 11.1% and are 4.2% more likely to terminate a trade relationship when their international suppliers experience environmental and social (E&S) incidents. These trade cuts are larger for publicly-listed U.S. importers facing high E&S investor pressure and lead to cross-country supplier reallocation, suggesting that E&S preferences in capital markets can have real effects in far-flung economies. Larger trade cuts around the scandal result in higher supplier E&S scores in subsequent years, and in the eventual resumption of trade. Our results highlight the role of customers’ exit in ensuring suppliers’ E&S compliance along global supply chains.

Profile of the speaker:

Dr. Guoman She joined HKU in 2020 as an Assistant Professor of Accounting. He received his Ph.D. in Accounting from the Hong Kong University of Science and Technology. His research focuses on disclosure and supply chain risk. His work has been published in Journal of Accounting Research.