Hong, S.-J.; Najmi, H. The Relationships between Supply Chain Capability and Shareholder Value Using Financial Performance Indicators. Sustainability2020, 12, 3130.
Hong, S.-J.; Najmi, H. The Relationships between Supply Chain Capability and Shareholder Value Using Financial Performance Indicators. Sustainability 2020, 12, 3130.
Hong, S.-J.; Najmi, H. The Relationships between Supply Chain Capability and Shareholder Value Using Financial Performance Indicators. Sustainability2020, 12, 3130.
Hong, S.-J.; Najmi, H. The Relationships between Supply Chain Capability and Shareholder Value Using Financial Performance Indicators. Sustainability 2020, 12, 3130.
Abstract
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. 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.
Keywords
shareholder value; return-on-asset; days-sales-outstanding; current ratio; supply chain capability
Subject
Business, Economics and Management, Economics
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
