Research

Working Papers and Publication

1. Yilin Shi, Jing Wu, Yu Zhang, and Yuqing Zhou, 2025. "Supply Chain Washing: Strategic Disclosure of Corporate Suppliers." Third-round Revision at Journal of Accounting and Economics (UTD24, Latest manuscript available upon request)

• Selected for presentation at the 2022 Western Finance Association Meeting (WFA)

• Selected for presentation at the 2024 Midyear Meeting of the Financial Accounting and Reporting Section (FARS)

• Selected for presentation at the 2025 MSOM Conference

Abstract: This paper examines how firms manage their disclosure of suppliers to create a favorable green image of their supply chain. We find that firms selectively disclose relationships with environmentally responsible (high-ESG) suppliers while withholding relationships with low-ESG ones, ceteris paribus. Our analysis suggests that this selective disclosure is driven by greenwashing rather than by a genuine effort to communicate improvements in supply-chain ESG performance. Further, we document that firms are more likely to feature green suppliers in the 10-K's Business section and ESG reports, while less environmentally responsible suppliers tend to appear in the 10-K's Risk Factors section. Moreover, the extent of this strategic disclosure decreases as regulations on environmental information transparency become stricter. Additionally, we observe that companies that strategically disclose green suppliers have higher stock returns and asset turnover in the short term, although these effects diminish over time. This suggests investors and consumers need time to understand strategic supply chain disclosures.

2. Yilin Shi, Christopher S Tang, and Jing Wu, 2025. "Are Firms Voluntarily Disclosing Emissions Greener?” Production and Operations Management, 34(8): 2363–2377. (UTD24)

• Selected for presentation at the 2023 Wharton Empirical Workshop in OM

• Media Coverage: Barron's, UCLA Anderson Review

Abstract: Do firms voluntarily disclosing emissions have lower levels of greenhouse gases in their in-house and outsourced operations? We examine this question using Scope 1 and upstream Scope 3 emission data reported by firms or estimated by S&P Trucost from 2002 to 2020. Our empirical results reveal that “voluntary disclosing firms” tend to have lower levels of “internal emissions” (i.e., Scope 1 emissions) and yet higher levels of “external emissions” from upstream suppliers (i.e., estimated upstream Scope 3 emissions). Overall, disclosing firms tend to have more emissions in the entire supply chain. A plausible explanation is that they may outsource more emissions to upstream suppliers than non-disclosing firms. By exploring the potential mechanisms that explain our results, we find that disclosing firms tend to exert more effort to reduce their internal emissions and outsource more carbon-intensive operations to suppliers. This finding is consistent with their decreasing Scope 1 emissions and increasing Scope 3 emissions. In addition to examining differences in emissions between high- and low-emission industries and across regions, we also investigate the implications of mandatory environmental reporting regulations by different governments and find these regulations can effectively nudge disclosing firms to reduce total emissions, including Scope 1 and Scope 3. As more regulations require the disclosure of Scope 3 emissions, our findings highlight the necessity for firms to develop processes and exert efforts to measure, monitor, and control both in-house and outsourced emissions. Additionally, our findings indicate that Environmental, Social, and Governance investment managers should perform due diligence rather than solely relying on firms that disclose their Scope 1 emissions.

3. Jing Wu, Yilin Shi, and Yi Liao, 2025. "Addressing Supply Chain Carbon Emissions: Measurement, Reporting, and Reduction Strategies." R&R at Production and Operations Management (UTD24, Latest manuscript available upon request)

Abstract: This paper aims to honor Professor Christopher S. Tang’s contributions to sustainable operations management by examining the pivotal yet underappreciated role of supply chains in global carbon emissions, highlighting the significant challenges in measuring, reporting, and reducing these emissions. Despite the critical importance of supply chains in contributing to overall carbon footprints, current efforts to address these emissions are often overshadowed by more visible direct emissions (Scope 1) and energy-related emissions (Scope 2). We review existing methodologies for carbon measurement, such as the Environmentally Extended Input-Output (EEIO) model and product-specific life cycle assessments (LCAs). In particular, we introduce two novel empirical papers on supply chain emissions and selective disclosure of corporate suppliers. We also review existing literature on reduction strategies in global supply chains, including supply chain mapping, collaborative efforts, and the impact of government policies like carbon border adjustments. Additionally, we present case studies of leading companies, Lenovo and Siemens, to illustrate practical approaches to global supply chain decarbonization and the regulatory landscape, emphasizing the urgent need for accurate measurement and transparent reporting to drive meaningful supply chain climate action.