Table A1 Variable definitions Dependent...

Table A1

Variable definitions

Dependent variables	Source	Description
Sales growth (“sg1”)	CS	Sales growth is the logarithmic ratio of current sales to the previous year’s sales (Compustat item sale). We denote this variable in the tables as sg1
Return on assets (“roa”)	CS	Return on assets, being the ratio of operating income before depreciation (Compustat: oibdp) to average total assets (Compustat: at), which is the sum of the current and previous year’s total assets divided by two
Independent variables
Chief supply chain officer (“csco”)	BX	The binary variable csco_i,t takes a value of 1 if firm i has CSCO presence at least nine months in year t, and 0 otherwise. We use BoardEx variable rolename to identify CSCO positions and measure CSCO tenure with datestartrole and dateendrole
COVID-19 period (“covid”)		A binary variable for the COVID-19 period (year 2020)
Supply or demand risk exposure (“exposure”)	RF	Industry exposure to supply or demand risks, determined by calculating the industry average frequency of discussions related to these risks in 2017–2019 earnings calls (see Supplementary Materials for details)
Supply or demand shock (“shock”)	RF	Quantifies industry COVID-19 supply and demand shocks by linguistically analyzing sentiment polarity of supply/demand impact mentions in 2020 earnings calls (see Supplementary Materials for details)
Control variables
Firm size	CS	Natural logarithm of previous year’s sales
Leverage	CS	Previous year’s long-term debt (dltt) to total assets
Sales trend	CS	Previous year’s sales growth
Profitability	CS	Previous year’s return on assets
Channel variables
Asset turnover (“ato”)	CS	Sales divided by average total assets
Return on sales (“ros”)	CS	Operating income divided by sales
Cost of sales (“cos”)	CS	Cost of goods sold (cogs) divided by sales
Cash conversion cycle (“ccc”)	CS	(DSO + DIO-DPO), where DSO is the average accounts receivable (rect) to sales ratio, DIO is an average inventory (invt) divided by the cost of goods sold (cogs), and DPO is the average accounts payable (ap) divided by cost of goods
Capacity slack (“slack”)	CS	The ratio of net fixed assets (ppent) to sales
Asset intensity (“ppe”)	CS	The ratio of net fixed assets to average total assets
Vertical integration (“intg”)	CS	1 – the ratio of purchasing costs (cogs + Δinvt) to sales

Dependent variables	Source	Description
Sales growth (“sg1”)	CS	Sales growth is the logarithmic ratio of current sales to the previous year’s sales (Compustat item sale). We denote this variable in the tables as sg1
Return on assets (“roa”)	CS	Return on assets, being the ratio of operating income before depreciation (Compustat: oibdp) to average total assets (Compustat: at), which is the sum of the current and previous year’s total assets divided by two
Independent variables
Chief supply chain officer (“csco”)	BX	The binary variable csco_i,t takes a value of 1 if firm i has CSCO presence at least nine months in year t, and 0 otherwise. We use BoardEx variable rolename to identify CSCO positions and measure CSCO tenure with datestartrole and dateendrole
COVID-19 period (“covid”)		A binary variable for the COVID-19 period (year 2020)
Supply or demand risk exposure (“exposure”)	RF	Industry exposure to supply or demand risks, determined by calculating the industry average frequency of discussions related to these risks in 2017–2019 earnings calls (see Supplementary Materials for details)
Supply or demand shock (“shock”)	RF	Quantifies industry COVID-19 supply and demand shocks by linguistically analyzing sentiment polarity of supply/demand impact mentions in 2020 earnings calls (see Supplementary Materials for details)
Control variables
Firm size	CS	Natural logarithm of previous year’s sales
Leverage	CS	Previous year’s long-term debt (dltt) to total assets
Sales trend	CS	Previous year’s sales growth
Profitability	CS	Previous year’s return on assets
Channel variables
Asset turnover (“ato”)	CS	Sales divided by average total assets
Return on sales (“ros”)	CS	Operating income divided by sales
Cost of sales (“cos”)	CS	Cost of goods sold (cogs) divided by sales
Cash conversion cycle (“ccc”)	CS	(DSO + DIO-DPO), where DSO is the average accounts receivable (rect) to sales ratio, DIO is an average inventory (invt) divided by the cost of goods sold (cogs), and DPO is the average accounts payable (ap) divided by cost of goods
Capacity slack (“slack”)	CS	The ratio of net fixed assets (ppent) to sales
Asset intensity (“ppe”)	CS	The ratio of net fixed assets to average total assets
Vertical integration (“intg”)	CS	1 – the ratio of purchasing costs (cogs + Δinvt) to sales

Note(s): Notation: CS = Compustat North America, BX = BoardEx North America, RF = Refinitiv Eikon

Source(s): Created by authors

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