IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v85y2025ipds1544612325014485.html

The impact of supply chain transparency on corporate litigation risks: An analysis based on ESG dimensions

Author

Listed:
  • Zhang, Huatao
  • Jiang, Bolan
  • Zhang, Bao

Abstract

This research focuses on the relationship between corporate supply chain transparency and litigation risks. By comprehensively applying empirical analysis methods, it reveals the internal relationship and influencing mechanism between the two. The study finds that enhancing supply chain transparency can significantly reduce corporate litigation risks, and corporate ESG performance plays a crucial mediating role in this process. A heterogeneity analysis taking different ownership structures as examples shows that the reduction of litigation risks is more prominent for non - state - owned enterprises. Finally, this research verifies the reliability of the research conclusions through robustness tests and endogeneity tests, demonstrating that supply chain transparency plays an important role in reducing corporate litigation risks.

Suggested Citation

  • Zhang, Huatao & Jiang, Bolan & Zhang, Bao, 2025. "The impact of supply chain transparency on corporate litigation risks: An analysis based on ESG dimensions," Finance Research Letters, Elsevier, vol. 85(PD).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pd:s1544612325014485
    DOI: 10.1016/j.frl.2025.108193
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612325014485
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2025.108193?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Li, Huxing & Liu, Dongming & Tan, Haoyu & Tu, Yongqian & Zhao, Liang, 2024. "Board independence, litigation risk, and expense stickiness: Moderating role of economic policy," International Review of Financial Analysis, Elsevier, vol. 96(PA).
    2. Feng, Cong & Fay, Scott & Kashmiri, Saim, 2022. "The value relevance of descriptive R&D intensity," Journal of Business Research, Elsevier, vol. 139(C), pages 1394-1407.
    3. Vibhuti Dhingra & Harish Krishnan, 2021. "Managing Reputation Risk in Supply Chains: The Role of Risk Sharing Under Limited Liability," Management Science, INFORMS, vol. 67(8), pages 4845-4862, August.
    4. Tinglong Dai & Christopher Tang, 2022. "Frontiers in Service Science: Integrating ESG Measures and Supply Chain Management: Research Opportunities in the Postpandemic Era," Service Science, INFORMS, vol. 14(1), pages 1-12, March.
    5. Zhang, Hua & Zhang, Huaqing & Tian, Li & Yuan, Shengli & Tu, Yongqian, 2024. "ESG performance and litigation risk," Finance Research Letters, Elsevier, vol. 63(C).
    6. Yutong Liu & Jian Du & Taewon Kang & Mingu Kang, 2024. "Establishing supply chain transparency and its impact on supply chain risk management and resilience," Operations Management Research, Springer, vol. 17(3), pages 1157-1171, September.
    7. Susanne Arvidsson & John Dumay, 2022. "Corporate ESG reporting quantity, quality and performance: Where to now for environmental policy and practice?," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 1091-1110, March.
    8. Zhang, Jiawei & Wang, Ruzhou & Ding, Yi & Liang, Fangzhi, 2025. "Can ESG ratings influence relationship-based transactions: Empirical evidence from Chinese listed companies," International Review of Financial Analysis, Elsevier, vol. 102(C).
    9. Lei Xi & Hui Wang, 2024. "The Influence of Green Transformation on ESG Management and Sustainable Competitive Advantage: An Empirical Comparison of Companies in the Pearl River Delta and Yangtze River Delta," Sustainability, MDPI, vol. 16(18), pages 1-21, September.
    10. Matthias Fahn & Giorgio Zanarone, 2022. "Transparency in relational contracts," Strategic Management Journal, Wiley Blackwell, vol. 43(5), pages 1046-1071, May.
    11. Smith, Deborah Drummond & Gleason, Kimberly C. & Kannan, Yezen H., 2021. "Auditor liability and excess cash holdings: Evidence from audit fees of foreign incorporated firms," International Review of Financial Analysis, Elsevier, vol. 78(C).
    12. Chunguang Bai & Joseph Sarkis, 2020. "A supply chain transparency and sustainability technology appraisal model for blockchain technology," International Journal of Production Research, Taylor & Francis Journals, vol. 58(7), pages 2142-2162, April.
    13. Guangyou Zhou & Lian Liu & Sumei Luo, 2022. "Sustainable development, ESG performance and company market value: Mediating effect of financial performance," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3371-3387, November.
    14. Treepongkaruna, Sirimon & Kyaw, Khine & Jiraporn, Pornsit, 2022. "Shareholder litigation rights and ESG controversies: A quasi-natural experiment," International Review of Financial Analysis, Elsevier, vol. 84(C).
    15. Feng, Weilin & Meng, Yuqun & Tian, Li Grace & Tu, Steve & Wang, Yuran, 2023. "Corporate strategy and litigation risk," Finance Research Letters, Elsevier, vol. 58(PB).
    16. He, Hui & Shi, Wei, 2023. "Enterprise litigation risk and enterprise performance," Finance Research Letters, Elsevier, vol. 55(PA).
    17. Ting-Ting Li & Kai Wang & Toshiyuki Sueyoshi & Derek D. Wang, 2021. "ESG: Research Progress and Future Prospects," Sustainability, MDPI, vol. 13(21), pages 1-28, October.
    18. Hyun-Uk Jung & Tae-Hyoung Mun & Taewoo Roh, 2021. "Does Debt Financing Affect the Sustainability of Transparent Accounting Information?," Sustainability, MDPI, vol. 13(7), pages 1-11, April.
    19. Montecchi, Matteo & Plangger, Kirk & West, Douglas C., 2021. "Supply chain transparency: A bibliometric review and research agenda," International Journal of Production Economics, Elsevier, vol. 238(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xue, Qinyuan & Jin, Yifei & Zhang, Cheng, 2024. "ESG rating results and corporate total factor productivity," International Review of Financial Analysis, Elsevier, vol. 95(PA).
    2. Alan Kai Ming Au & Yi-Fan Yang & Huan Wang & Rui-Hong Chen & Leven J. Zheng, 2023. "Mapping the Landscape of ESG Strategies: A Bibliometric Review and Recommendations for Future Research," Sustainability, MDPI, vol. 15(24), pages 1-26, December.
    3. Ajithakumari Vijayappan Nair Biju & Snehith Jacob Kodiyatt & P. P. Nithi Krishna & Geetha Sreelekshmi, 2023. "ESG sentiments and divergent ESG scores: suggesting a framework for ESG rating," SN Business & Economics, Springer, vol. 3(12), pages 1-21, December.
    4. Cao, Ying & Li, Guang & Meng, Kai & Peng, Xianghui, 2025. "Managerial decisions of remanufacturing technology portfolio under a discrete choice model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 195(C).
    5. Zhao, Yidan & Zhang, Cong & Zhao, Yiming & Zhou, Lin, 2025. "Data-Driven sustainability: Examining the impact of data element utilization on corporate ESG performance," Finance Research Letters, Elsevier, vol. 73(C).
    6. Dongheng Han & Zhihui Li & Xun Cui & Lin Liang, 2025. "How Can We Improve the ESG Performance of Manufacturing Enterprises?—The Carbon Resilience Perspective," Sustainability, MDPI, vol. 17(6), pages 1-26, March.
    7. Yang Liu & Sameer Kumar & Huiqing Liu & Shun Li & Ziyun Zhou, 2025. "ESG performance, digital transformation, and green innovation," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-19, December.
    8. Ruixin Su & Na Li, 2024. "Environmental, Social, and Governance Performance, Platform Governance, and Value Creation of Platform Enterprises," Sustainability, MDPI, vol. 16(17), pages 1-21, August.
    9. Taehyun Ko & Jaeram Lee & Daehyeon Park & Doojin Ryu, 2023. "Supply chain transparency as a signal of ethical production," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(3), pages 1565-1573, April.
    10. Ramona Waldau, 2025. "A systematic literature review on determinants and outcomes of ESG performance in family firms," Management Review Quarterly, Springer, vol. 75(4), pages 3357-3415, December.
    11. Qu, Shawn, 2024. "Litigation risk and corporate philanthropy: A managerial perspective analysis," Finance Research Letters, Elsevier, vol. 62(PA).
    12. Zhang, Hua & Lai, Jie & Guo, Zheng, 2025. "When greenwashing meets ESG: Exploring the role of third-party ESG ratings in corporate greenwashing behavior," Journal of Business Research, Elsevier, vol. 200(C).
    13. Thanavutd Chutiphongdech & Paron Vongchan & Yan Zhao & Brian P. McCullough, 2026. "Sustainable sport event management through ESG: a systematic literature review," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 28(4), pages 10433-10486, April.
    14. Zijian Cheng & He Gao & Zhangxin ( Frank) Liu & Sirimon Treepongkaruna, 2024. "Strategic choices in going public: ESG performance implications in China," Business Strategy and the Environment, Wiley Blackwell, vol. 33(8), pages 7708-7728, December.
    15. Bui, Tat-Dat, 2024. "Assessing sustainable supply chain transparency practices in Taiwan semiconductor industry: A hierarchical interdependence approach," International Journal of Production Economics, Elsevier, vol. 272(C).
    16. Heying Liu & Chan Lyu, 2022. "Can ESG Ratings Stimulate Corporate Green Innovation? Evidence from China," Sustainability, MDPI, vol. 14(19), pages 1-20, September.
    17. Mohy-ud-Din, Kamran, 2024. "ESG reporting, corporate green innovation and interaction role of board diversity: A new insight from US," Innovation and Green Development, Elsevier, vol. 3(4).
    18. Xin Jin & Yizhu Wu, 2024. "How does digital transformation affect the ESG performance of Chinese manufacturing state-owned enterprises?—Based on the mediating mechanism of dynamic capabilities and the moderating mechanism of the institutional environment," PLOS ONE, Public Library of Science, vol. 19(5), pages 1-26, May.
    19. Jing An & Suicheng Li & Jianqi Qiao & Qingyun Yang, 2026. "The impact of smart supply chain management on supply chain transparency: a dynamic resource-based view," Operations Management Research, Springer, vol. 19(1), pages 1-24, March.
    20. Costantiello, Alberto & Drago, Carlo & Arnone, Massimo & Leogrande, Angelo, 2024. "Regional Research Intensity and ESG Indicators in Italy: Insights from Panel Data Models and Machine Learning," MPRA Paper 124185, University Library of Munich, Germany.

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:85:y:2025:i:pd:s1544612325014485. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.