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Article

The Relationships between Supply Chain Capability and Shareholder Value Using Financial Performance Indicators

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Department of Marketing, Logistics and Operations Management, G. Brint Ryan College of Business, University of North Texas, Denton, TX 76203, USA
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Department of Information Systems and Operations Management, College of Business, University of Central Oklahoma, Edmond, OK 73034, USA
*
Author to whom correspondence should be addressed.
Sustainability 2020, 12(8), 3130; https://doi.org/10.3390/su12083130
Received: 3 March 2020 / Revised: 3 April 2020 / Accepted: 6 April 2020 / Published: 13 April 2020
(This article belongs to the Section Economic and Business Aspects of Sustainability)
The purpose of this paper is to explore which financial performance indicators (FPIs) evaluate the level of supply chain capability (SCC) that explicitly touches all of the business functions and processes within and beyond the company. The authors investigated nine FPIs that were selected from the financial statements of 155 companies within nine industries from 2011 to 2017 using Morningstar financial database and Gartner’s report. The authors find that suitable FPIs to measure SCC for shareholders’ value are return-on-assets (ROA), days-sales-outstanding (DSO), and current ratio (CR). This means that higher ROA, shortened DSO, and an appropriate level of CR could reach a sustainable supply chain. These results will help the industry to avert a major disruption in supply chain processes and activities using suitable financial performance indicators. View Full-Text
Keywords: shareholder value; return-on-asset; days-sales-outstanding; current ratio; supply chain capability; sustainable supply chain shareholder value; return-on-asset; days-sales-outstanding; current ratio; supply chain capability; sustainable supply chain
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    Doi: https://doi.org/10.20944/preprints202003.0074.v1
MDPI and ACS Style

Hong, S.-J.; Najmi, H. The Relationships between Supply Chain Capability and Shareholder Value Using Financial Performance Indicators. Sustainability 2020, 12, 3130. https://doi.org/10.3390/su12083130

AMA Style

Hong S-J, Najmi H. The Relationships between Supply Chain Capability and Shareholder Value Using Financial Performance Indicators. Sustainability. 2020; 12(8):3130. https://doi.org/10.3390/su12083130

Chicago/Turabian Style

Hong, Seock-Jin, and Hossein Najmi. 2020. "The Relationships between Supply Chain Capability and Shareholder Value Using Financial Performance Indicators" Sustainability 12, no. 8: 3130. https://doi.org/10.3390/su12083130

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