Digital supply chain announcements and firm’s stock market value: An empirical study from China

Listed companies have implemented the digital transformation of supply chains to improve performance, and these companies usually actively issue digital supply chain (DSC) announcements to disclose important information about DSC establishments with the aim of attracting investors. This event study selects 174 DSC announcements released by Chinese-listed companies from 2018 to 2020 to explore the impact of DSC announcements on stock market performance based on signaling theory, which can be used to elucidate the critical value of DSC announcements. First, the results reveal a positive stock market reaction to DSC announcements. Second, compared with DSC announcements involving simple supply chain network structures, DSC announcements involving complex supply chain network structures lead to more positive stock market reactions. Third, technological innovation capability does not affect stock market reactions. Finally, DSC announcements in the internalization stage led to more positive stock market reactions than DSC announcements in the input and output stages. Compared with DSC announcements facing upstream supply chains or whole supply chains, DSC announcements facing downstream supply chains lead to more positive stock market reactions. This study explores the stock market value of DSCs and promotes the existing empirical literature on DSCs to help managers fully understand the market value of DSCs.