Inventory, fixed capital, and the cross-section of corporate investment

Investigation of the Effect of e-Platform Information Security Breaches: A Small and Medium Enterprise Supply Chain Perspective

“…First, we contributed to the IT-related disruption literature by showing that ISBs have a significant cost impact on the inventory management performance of SME supply chains linked to ecommerce/technology platforms, which is seldom reported. We empirically demonstrated that the inventory management cost, which represents a huge percentage of revenue for small businesses (Kim, 2020), is impacted significantly (up to 57% in some cases), eradicating any opportunity for profit, leading to business death. This answers the 'extent of ISB impact' question which previous supply chain studies have not focused on.…”

“…Despite small businesses accounting for the majority of private businesses in most developed and developing economies (Wright, 2018), there is a paucity of research into how their supply chains are impacted by disruptions caused to their service providers. The effects reported usually include loss of revenue, costs of remedial action or litigation and share price drops, but the effect on inventory management, arguably the most important cost component for small businesses, is seldom discussed (Kim, 2020). A 2019 Zogby Analytics survey of 1006 smallbusiness decision-makers, conducted on behalf of the National Cyber Security Alliance, revealed that 10% of SMEs fail after experiencing a data breach (Small Business Cybercriminal Target Survey Data, 2019).…”

The impact of COVID-19 on the valuations of non-financial European firms

“…The I/S adjustments include non-cash gains and losses, while capex and WC represent the firm’s investment in long term assets and working capital. ( Kim, 2020 ) and ( Aktas et al, 2015 ) noted that these corporate investments vary with sales and contribute towards firm value. Therefore, with variation in sales (δS) we expect EBIT, WC, and capex to change subject to the factor sensitives.…”

Inventory investment and the choice of financing: Does financial development play a role?

“…Specifically, even though it constitutes less than 1% of GDP in advanced economies, aggregate inventory investment is 20 times more volatile than GDP (Dasgupta et al, 2019). As a result, it plays a major role in business cycle fluctuations (Blinder and Maccini, 1991;Caglayan et al, 2012;Nikolov, 2013;Maccini et al, 2015) 1 , and is frequently considered as a leading indicator (Kim, 2020). Due to their low adjustment costs, inventories are frequently used to absorb economic shocks.…”