Topic: Consequences of Conflict Mineral Disclosures for Supply Chains
Speaker: Qi Zhang
Date & Time: 10:00-11:30 Thursday, April 3, 2025
Venue: Room 245, Quanxue Building
Organizers: School of Accounting, Dongbei University of Finance and Economics; Liaoning Province Capital Market Finance and Accounting Graduate Innovation and Academic Exchange Center
Abstract:
This paper examines a potential mechanism of how a disclosure regulation may affect the composition of firms' supply chains. Using the conflict mineral disclosure regulation that requires firms to disclose the countries of origin for certain production input factors, I document that, after the disclosure mandate, firms are more likely to contract less often and even terminate more relationships with suppliers that are not subject to the regulation. Cross-sectional test results show that the effects are mainly driven by the detail of the information required to disclose. Further analysis suggests that the stock market reacts negatively to firms that are more dependent on non-subject suppliers prior to the regulation or firms that drop more non-subject suppliers after the regulation. Overall, I provide evidence that the conflict mineral disclosure regulation put firms with non-subject suppliers at a disadvantage.
Introduction of Speaker:
Qi Zhang is an Assistant Professor at the Chinese University of Hong Kong. His research primarily focuses on corporate information disclosure, machine learning, and sustainability. He obtained his doctoral degree from Frankfurt School of Finance & Management and his bachelor's degree from Central University of Finance and Economics. His research findings have been accepted for publication by the Journal of Accounting Research.
Special Attention:
Strictly prohibit recording and public dissemination of the lecture content without permission from the author and organizer, violators may be investigated for legal responsibility.
