BRUMADINHO
IMPACT ON VALE'S SUPPLY CHAIN
DOI:
https://doi.org/10.12712/rpca.v18i2.60577Abstract
This research examined the implications of the Brumadinho disaster on Vale's supply chain shares. The research encompassed 221 companies from 32 countries over a 90-day event window. Abnormal returns were employed to assess the behavior of assets in Vale's extended supply chain, including suppliers, suppliers of suppliers, customers, and customers of customers. Surprisingly, the negative reaction observed in Vale's assets did not spread to its supply chain. This contradicts the expectation of reputational contagion, suggesting a discrepancy between literature and reality in cases of corporate social irresponsibility.
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