Supply chain disruptions in COVID-19 and market performances of firms: a study in the Indian automobile sector

Abstract

Purpose This study aims to examine empirically the nature of supply chain disruptions caused by the COVID-19 pandemic, particularly on the Indian automobile sector. Design/methodology/approach The authors evaluate the stock market performance of individual company and its quantitative relationship to certain variables related to company’s supply chain. Findings The authors analysed the company’s operations considering several ratios like asset intensity, company size, labour intensity and inventory to revenue. Research limitations/implications The results of analysis can help the companies to understand how disruptions in the supply chain can affect the company’s operations and how it is perceived by the investors in the stock market. Practical implications Also, investors are benefitted, as they can understand how different companies with different operational characteristics react to global disruptions in supply chains, which in turn would help them to find better investment opportunities. Originality/value Although there is some literature available on the qualitative as well as quantitative analysis, the authors go further to analyse the impact of supply chain disruption on the stocks of the automobile sector.