Effect of supply chain management efficiency on corporate risk-taking: evidence from an emerging Asian market

Purpose This study investigates the relationship between supply chain management efficiency (SCME) and the risk-taking behavior of firms listed on the Tehran Stock Exchange over the period 2012–2020, with a particular focus on the role of SCME in mitigating both accounting and market risks. Design/methodology/approach The empirical analysis is conducted using nine years of panel data. In the baseline specifications, SD-ROA is employed as the primary proxy for accounting risk, while BETA serves as the main measure of market risk. To ensure the robustness of the findings, alternative risk proxies, including MAX-MINROA as well as quantile regression techniques, are further incorporated. To address potential endogeneity concerns arising from selection bias and to improve covariate balance between treatment and control groups, we additionally employ propensity score matching (PSM) and entropy balancing (EB). Findings The results reveal that supply chain inefficiency significantly increases accounting risk, while its impact on market risk is statistically insignificant. Robustness tests using PSM, EB and quantile regressions consistently confirm the negative association between SCME and accounting risk, underscoring the stability and reliability of the baseline findings. Originality/value To the best of our knowledge, this is the first study in the Iranian capital market that simultaneously examines the effects of SCME on both accounting and market risk while employing advanced matching techniques such as PSM and EB. The findings highlight that improving SCME can serve as an effective tool for risk management and carries substantial practical implications for supply chain managers and corporate decision-makers.