A Firm’s Operational Risk: Data Set and Empirical Evidence

References

• Adamopoulos P, Todri V (2024) Consumer social connectedness and persuasiveness of collaborative-filtering recommender systems: Evidence from an online-to-offline recommendation app. Production Oper. Management, ePub ahead of print May 21, https://doi.org/10.1177/10591478241259422.Crossref, Google Scholar
• Astvansh V (2025a) Classifying an incoming customer message into spam versus ham. Marketing Intelligence Planning, ePub ahead of print March 28, https://doi.org/10.1108/MIP-04-2024-0252.Crossref, Google Scholar
• Astvansh V (2025b) Insights from customers’ chats with bots and human agents. Marketing Intelligence Planning, ePub ahead of print June 10, https://doi.org/10.1108/MIP-07-2024-0525.Crossref, Google Scholar
• Astvansh V, Ball GP, Josefy M (2022) The recall decision exposed: Automobile recall timing and process data set. Manufacturing Service Oper. Management 24(3):1457–1473.Link, Google Scholar
• Astvansh V, Eshghi K, Shahriari H, Shi W (2025) How can a firm suppress shareholders’ punitive reaction to its disengagement from a geopolitically uncertain market? J. Marketing, ePub ahead of print May 30, https://doi.org/10.1177/002224292513493.Crossref, Google Scholar
• Babich V, Kouvelis P (2018) Introduction to the special issue on research at the interface of finance, operations, and risk management (iFORM): Recent contributions and future directions. Manufacturing Service Oper. Management 20(1):1–18.Link, Google Scholar
• Bai C, Gao W, Sarkis J (2021) Operational risks and firm market performance: Evidence from China. Decision Sci. 52(4):920–951.Crossref, Google Scholar
• Bao Y, Datta A (2014) Simultaneously discovering and quantifying risk types from textual risk disclosures. Management Sci. 60(6):1371–1391.Link, Google Scholar
• Beatty A, Cheng L, Zhang H (2019) Are risk factor disclosures still relevant? Evidence from market reactions to risk factor disclosures before and after the financial crisis. Contemporary Accounting Res. 36(2):805–838.Crossref, Google Scholar
• Bloomberg Law (2023) Capital markets, drafting guide—Drafting effective SEC-complaint risk factors. Accessed September 25, 2025, https://www.bloomberglaw.com/external/document/X7FUB9DK000000/capital-markets-drafting-guide-drafting-effective-sec-compliant-.Google Scholar
• Bonnett AW, Heim GR (2024) Do mid‐level providers enhance hospital cost per discharge or triple aim performance efficiency? An exploratory analysis. J. Oper. Management 70(5):793–830.Crossref, Google Scholar
• Busenbark JR, Lange D, Certo ST (2017) Foreshadowing as impression management: Illuminating the path for security analysts. Strategic Management J. 38(12):2486–2507.Crossref, Google Scholar
• Busenbark JR, Yoon H, Gamache DL, Withers MC (2022) Omitted variable bias: Examining management research with the impact threshold of a confounding variable (ITCV). J. Management 48(1):17–48.Crossref, Google Scholar
• Campbell JL, Chen H, Dhaliwal D, Lu HM, Steele LB (2014) The information content of mandatory risk factor disclosures in corporate filings. Rev. Accounting Stud. 19(1):396–455.Crossref, Google Scholar
• Carlos WC, Lewis BW (2018) Strategic silence: Withholding certification status as a hypocrisy avoidance tactic. Admin. Sci. Quart. 63(1):130–169.Crossref, Google Scholar
• Cazier RA, McMullin JL, Treu JS (2021) Are lengthy and boilerplate risk factor disclosures inadequate? An examination of judicial and regulatory assessments of risk factor language. Accounting Rev. 96(4):131–155.Crossref, Google Scholar
• Certo ST, Busenbark JR, Kalm M, LePine JA (2020) Divided we fall: How ratios undermine research in strategic management. Organ. Res. Methods 23(2):211–237.Crossref, Google Scholar
• Certo ST, Jeon C, Raney K, Lee W (2024) Measuring what matters: Assessing how executives reference firm performance in corporate filings. Organ. Res. Methods 27(1):140–166.Crossref, Google Scholar
• Connelly BL, Certo ST, Ireland RD, Reutzel CR (2011) Signaling theory: A review and assessment. J. Management 37(1):39–67.Crossref, Google Scholar
• Connelly BL, Certo ST, Reutzel CR, DesJardine MR, Zhou YS (2025) Signaling theory: State of the theory and its future. J. Management 51(1):24–61.Crossref, Google Scholar
• Craighead CW, Blackhurst J, Rungtusanatham MJ, Handfield RB (2007) The severity of supply chain disruptions: Design characteristics and mitigation capabilities. Decision Sci. 38(1):131–156.Crossref, Google Scholar
• Damavandi H, Astvansh V (2025) Unveiling regulatory operations: A data set of the determinants, process, and outcomes of product defect investigations by the US automotive safety regulator. Manufacturing Service Oper. Management 27(1):181–199.Link, Google Scholar
• Damavandi H, Mai F, Astvansh V (2025) A new technique for measuring a firm’s marketing emphasis. Marketing Lett., ePub ahead of print June 10, https://doi.org/10.1007/s11002-025-09781-7.Crossref, Google Scholar
• Darby JL, Ketchen DJ Jr, Ball GP, Mukherjee U (2023) CEO stock ownership, recall timing, and stock market penalties. Manufacturing Service Oper. Management 25(5):1909–1930.Link, Google Scholar
• Dyer T, Lang M, Stice-Lawrence L (2017) The evolution of 10-K textual disclosure: Evidence from latent Dirichlet allocation. J. Accounting Econom. 64(2–3):221–245.Crossref, Google Scholar
• Feingold S (2024) Red Sea attacks: What trade experts are saying about the shipping disruptions. World Economic Forum (February 20), https://www.weforum.org/stories/2024/02/red-sea-attacks-trade-experts-houthi-shipping-yemen/.Google Scholar
• Frank KA, Maroulis SJ, Duong MQ, Kelcey BM (2013) What would it take to change an inference? Using Rubin’s causal model to interpret the robustness of causal inferences. Ed. Evaluation Policy Anal. 35(4):437–460.Crossref, Google Scholar
• Fyffe S, Lee P, Kaplan S (2024) “Transforming” personality scale development: Illustrating the potential of state-of-the-art natural language processing. Organ. Res. Methods 27(2):265–300.Crossref, Google Scholar
• Gamache DL, Devers CE, Klein FB, Hannigan T (2023) Shifting perspectives: How scrutiny shapes the relationship between CEO gender and acquisition activity. Strategic Management J. 44(12):3012–3041.Crossref, Google Scholar
• Gaulin MP (2017) Risk fact or fiction: The information content of risk factor disclosures. Accessed September 25, 2025, https://mgaulin.com/research/risk-fact-or-fiction-the-information-content-of-risk-factor-disclosures.html.Google Scholar
• Heil O, Robertson TS (1991) Toward a theory of competitive market signaling: A research agenda. Strategic Management J. 12(6):403–418.Crossref, Google Scholar
• Hendricks KB, Singhal VR (2003) The effect of supply chain glitches on shareholder wealth. J. Oper. Management 21(5):501–522.Crossref, Google Scholar
• Hendricks KB, Singhal VR (2005a) An empirical analysis of the effect of supply chain disruptions on long‐run stock price performance and equity risk of the firm. Production Oper. Management 14(1):35–52.Crossref, Google Scholar
• Hendricks KB, Singhal VR (2005b) Association between supply chain glitches and operating performance. Management Sci. 51(5):695–711.Link, Google Scholar
• Hendricks KB, Singhal VR (2014) The effect of demand–supply mismatches on firm risk. Production Oper. Management 23(12):2137–2151.Crossref, Google Scholar
• Hendricks KB, Jacobs BW, Singhal VR (2020) Stock market reaction to supply chain disruptions from the 2011 Great East Japan Earthquake. Manufacturing Service Oper. Management 22(4):683–699.Link, Google Scholar
• Hendricks KB, Singhal VR, Zhang R (2009) The effect of operational slack, diversification, and vertical relatedness on the stock market reaction to supply chain disruptions. J. Oper. Management 27(3):233–246.Crossref, Google Scholar
• Ho TH, Lim N, Reza S, Xia X (2017) OM forum—Causal inference models in operations management. Manufacturing Service Oper. Management 19(4):509–525.Link, Google Scholar
• Hope OK, Hu D, Lu H (2016) The benefits of specific risk-factor disclosures. Rev. Accounting Stud. 21(4):1005–1045.Crossref, Google Scholar
• Hora M, Klassen RD (2013) Learning from others’ misfortune: Factors influencing knowledge acquisition to reduce operational risk. J. Oper. Management 31(1–2):52–61.Crossref, Google Scholar
• Hu W, Skowronski K, Dong Y, Shou Y (2023) Mergers and acquisitions in supply bases. Production Oper. Management 32(4):1059–1078.Crossref, Google Scholar
• Huang AH, Shen J, Zang AY (2022) The unintended benefit of the risk factor mandate of 2005. Rev. Accounting Stud. 27(4):1319–1355.Crossref, Google Scholar
• Huang F, Wang T, Yen JC (2023) Using relevant headings in risk factor disclosures: What is the impact on information processing? J. Accounting Public Policy 42(5):107123.Crossref, Google Scholar
• Huang KG, Li MC, Shen CHH, Wang Y (2024) Escaping the patent trolls: The impact of non‐practicing entity litigation on firm innovation strategies. Strategic Management J. 45(10):1954–1987Crossref, Google Scholar
• Johnson S (2010) SEC purchases companies for more risk information. CFO (August 10), https://www.cfo.com/news/sec-pushes-companies-for-more-risk-information/669152/.Google Scholar
• Kalatha S, Dontis-Charitos P, Kosmidou K, Andriosopoulos K (2025) The market reaction to operational risk events in the energy sector. Ann. Oper. Res. 347(1):611–631.Crossref, Google Scholar
• Ketokivi M, McIntosh CN (2017) Addressing the endogeneity dilemma in operations management research: Theoretical, empirical, and pragmatic considerations. J. Oper. Management 52(1):1–14.Crossref, Google Scholar
• Kothari SP, Shu S, Wysocki PD (2009) Do managers withhold bad news? J. Accounting Res. 47(1):241–276.Crossref, Google Scholar
• Kravet T, Muslu V (2013) Textual risk disclosures and investors’ risk perceptions. Rev. Accounting Stud. 18(4):1088–1122.Crossref, Google Scholar
• Lesmy D, Muchnik L, Mugerman Y (2019) Doyoureadme? Temporal trends in the language complexity of financial reporting. Preprint, submitted October 23, http://dx.doi.org/10.2139/ssrn.3469073.Google Scholar
• Lévesque M, Joglekar N, Davies J (2012) A comparison of revenue growth at recent-IPO and established firms: The influence of SG&A, R&D and COGS. J. Bus. Venturing 27(1):47–61.Crossref, Google Scholar
• Li H, Lam HK, Ho W, Yeung AC (2022) The impact of chief risk officer appointments on firm risk and operational efficiency. J. Oper. Management 68(3):241–269.Crossref, Google Scholar
• Li K, Mai F, Shen R, Yan X (2021) Measuring corporate culture using machine learning. Rev. Financial Stud. 34(7):3265–3315.Crossref, Google Scholar
• Lopez-Lira A (2021) Why do managers disclose risks accurately? Textual analysis, disclosures, and risk exposures. Econom. Lett. 204:109896.Crossref, Google Scholar
• Lu G, Ding XD, Peng DX, Chuang HHC (2018) Addressing endogeneity in operations management research: Recent developments, common problems, and directions for future research. J. Oper. Management 64(1):53–64.Crossref, Google Scholar
• Matsumura EM, Prakash R, Vera-Muñoz SC (2024) Climate-risk materiality and firm risk. Rev. Accounting Stud. 29(1):33–74.Crossref, Google Scholar
• McKenny AF, Aguinis H, Short JC, Anglin AH (2018) What doesn’t get measured does exist: Improving the accuracy of computer-aided text analysis. J. Management 44(7):2909–2933.Crossref, Google Scholar
• Miric M, Jia N, Huang KG (2023) Using supervised machine learning for large‐scale classification in management research: The case for identifying artificial intelligence patents. Strategic Management J. 44(2):491–519.Crossref, Google Scholar
• Nelson KK, Pritchard AC (2007) Litigation risk and voluntary disclosure: The use of meaningful cautionary language. Preprint, submitted July 7, http://dx.doi.org/10.2139/ssrn.998590.Google Scholar
• Peker I, Ar IM, Erol I, Searcy C (2023) Leveraging blockchain in response to a pandemic through disaster risk management: An IF-MCDM framework. Oper. Management Res. 16(2):642–667.Crossref, Google Scholar
• Petersen MA (2009) Estimating standard errors in finance panel data sets: Comparing approaches. Rev. Financial Stud. 22(1):435–480.Crossref, Google Scholar
• PricewaterhouseCoopers (2025) SEC 2160—Registration and reporting by smaller reporting companies. PwC Viewpoint. Accessed September 25, 2025, https://viewpoint.pwc.com/dt/us/en/pwc/pwc_sec_volume/pwc_sec_volume_US/2000_registration_un_US/sec_2160_registratio_US.html.Google Scholar
• Rathje J, Katila R, Reineke P (2024) Making the most of AI and machine learning in organizations and strategy research: Supervised machine learning, causal inference, and matching models. Strategic Management J. 45(10):1926–1953.Crossref, Google Scholar
• Rumyantsev S, Netessine S (2007) What can be learned from classical inventory models? A cross-industry exploratory investigation. Manufacturing Service Oper. Management 9(4):409–429.Link, Google Scholar
• Schmidt W, Raman A (2022) Operational disruptions, firm risk, and control systems. Manufacturing Service Oper. Management 24(1):411–429.Link, Google Scholar
• Schnatterly K, Calvano F, Berns JP, Deng C (2021) The effects of board expertise‐risk misalignment and subsequent strategic board reconfiguration on firm performance. Strategic Management J. 42(11):2162–2191.Crossref, Google Scholar
• SEC (1998) A plain English handbook: How to create clear SEC disclosure documents. Accessed September 25, 2025, https://www.sec.gov/pdf/handbook.pdf.Google Scholar
• SEC (2005) Securities offering reform. Accessed September 25, 2025, https://www.sec.gov/files/rules/final/33-8591.pdf.Google Scholar
• SEC (2013) The path forward to disclosure. Accessed September 25, 2025, https://www.sec.gov/news/speech/spch101513mjw.Google Scholar
• SEC (2016) Business and financial disclosure required by Regulation S-K. Accessed September 25, 2025, https://www.sec.gov/files/rules/concept/2016/33-10064.pdf.Google Scholar
• SEC (2020) Modernization of Regulation S-K Items 101, 103, and 105: A small entity compliance guide. Accessed September 25, 2025, https://www.sec.gov/corpfin/modernization-regulation-s-k-compliance-guide.Google Scholar
• Sharma L, Goradia D (2023) Will your insurance type influence clinical quality outcomes? An investigation of contributing factors, underlying mechanism, and consequences. Production Oper. Management 32(7):2207–2226.Crossref, Google Scholar
• Short JC, Broberg JC, Cogliser CC, Brigham KH (2010) Construct validation using computer-aided text analysis (CATA) an illustration using entrepreneurial orientation. Organ. Res. Methods 13(2):320–347.Crossref, Google Scholar
• Simchi-Levi D, Schmidt W, Wei Y, Zhang PY, Combs K, Ge Y, Gusikhin O, Sanders M, Zhang D (2015) Identifying risks and mitigating disruptions in the automotive supply chain. Interfaces 45(5):375–390.Link, Google Scholar
• Sodhi MS, Son BG, Tang CS (2012) Researchers’ perspectives on supply chain risk management. Production Oper. Management 21(1):1–13.Crossref, Google Scholar
• Spence M (1973) Job market signaling. Quart. J. Econom. 87(3):355–374.Crossref, Google Scholar
• Suslava K (2021) “Stiff business headwinds and uncharted economic waters”: The use of euphemisms in earnings conference calls. Management Sci. 67(11):7184–7213.Link, Google Scholar
• U.S. Securities and Exchange Commission (n.d.) General instructions as to financial statements (17 C.F.R. § 229.10). Legal Information Institute, Ithaca, NY, https://www.law.cornell.edu/cfr/text/17/229.10.Google Scholar
• Webb J (2016) Toyota’s ‘quake-proof’ supply chain that never was. Forbes (April 26), https://www.forbes.com/sites/jwebb/2016/04/26/toyotas-quake-proof-supply-chain-that-never-was/.Google Scholar
• Wishart-Smith H (2024) The semiconductor crisis: Addressing chip shortages and security. Forbes (July 19), https://www.forbes.com/sites/heatherwishartsmith/2024/07/19/the-semiconductor-crisis-addressing-chip-shortages-and-security/.Google Scholar
• Wu D (2024) Text-based measure of supply chain risk exposure. Management Sci. 70(7):4781–4801.Link, Google Scholar
• Yılmaz Ö, Son Y, Shang G, Arslan HA (2024) Causal inference under selection on observables in operations management research: Matching methods and synthetic controls. J. Oper. Management 70(5):831–859.Crossref, Google Scholar