Association Between Supply Chain Glitches and Operating Performance

This paper empirically documents the association between supply chain glitches and operating performance. The results are based on a sample of 885 glitches announced by publicly traded firms. Changes in various operating performance metrics for the sample firms are compared against a sample of control firms of similar size and from similar industries. In the year leading up to the announcement, the control-adjusted mean percent changes in operating income, return on sales, and return on assets for the sample firms are −107%, −114%, and −92%, respectively. During this same period, the control-adjusted changes in the level of return on sales and return on assets are −13.78% and −2.32%, respectively. Relative to…