2019) Mathematical modelling for a fabrication-inventory problem with scrap, an acceptable stock-out level, stochastic failures and a multi-shipment policy,

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Despite the importance of environmental penalties in environmental enforcement, how and under what situations they impact stock market reaction is still unclear. Drawing on the theories of expectancy violation and attention driven, a conceptual model is built to explore how environmental penalty influences stock market reaction through investor attention. Furthermore, it is explored that the air pollution and industry saliency facilitate the indirect relationship between environmental penalty and investor attention. We empirically test this theoretical framework using a sample of 88 listed companies that received the environmental penalty. Up to 31 December 2020, a total of 88 A-share listed companies in Shanghai and Shenzhen stock exchanges were obtained as samples by collecting the announcement of environmental penalties of listed companies on Juchao Network. Furthermore Baidu index is taken as a proxy for investor attention in this study. Our findings reveal that investor attention plays mediating role in the relationship between environmental penalty and abnormal returns, while the direct effect of environmental penalty on stock market reaction has not been verified, thus, investor attention plays a complete mediating role between them. In addition, air pollution moderates the relationship between Environmental penalties and investor attention. The study found that enterprises in heavy pollution industries might suffer safety-in-numbers effect, which would weaken the directly negative impact of environmental penalties, and verified the moderating effect of industry saliency. These findings provide theoretical and practical implications for understanding how environmental penalties influence on stock market reaction.

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Transnational producers facing the present-day competitive global supply-chain environments need to pursue the most appropriate manufacturing scheme, quality screening task, and stock shipping plan to satisfy customer’s timely multi-item requirements under minimum overall product fabrication-delivery expenses. This study develops a producer-retailer incorporated multi-item two-stage economic production quantity- (EPQ-) based system with delayed differentiation, expedited-rate for common parts, multiple deliveries plan, and random scrap. It aims to assist current manufacturing firms in achieving the aforementioned operating goals. Mathematical methods help us build an analytical model to explicitly portray the studied problem’s features and derive its overall system expenses. Hessian matrix equations and optimization approaches help us prove convexity and derive the cost-minimized fabrication- delivery decision. This study gives a simulated example to illustrate the research outcome’s applicability and the proposed model’s capabilities numerically. Consequently, diverse crucial information becomes obtainable to the manufacturers to facilitate various operating decision makings as follows: (i) the cost-minimized fabrication-delivery policy; (ii) the behavior of system’s overall expenses and operating policy regarding mean scrap rate, and different relationships between common part’s values and completion-rate; (iii) the system’s detailed cost components; (iv) the system’s overall expenses, utilization, and common part’s uptime concerning different common part’s expedited rates; and (v) the collective effects of critical system features on the overall expenses, uptime, and optimal cycle length, etc.