Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments January 9, 2023 erstellt
Beschreibung:
We examine whether managers stockpile excess inventory after experiencing natural disasters. Using major disasters in the U.S. between 1993 and 2018, we document that firms located within a disaster area stockpile excess inventory after experiencing a disaster. The effect is stronger when a disaster is more catastrophic, suggesting that managers experiencing more salient events tend to stockpile excess inventories to a greater extent. We further show that the effect is more pronounced for firms with higher stockout costs and lower labor adjustment costs. The post-disaster decision to temporarily hoard inventory negatively affects firm value and leads to poor firm performance. Overall, our findings highlight the importance of managers’ subjective risk perceptions in inventory-holding decisions