The Impact of Green Supply Chain Management Practices on Return on Equity: A Comparative Study between the United States and China.

The primary aim of this study is to assess the relationship between Green Supply Chain Management (GSCM) practices and the Return on Equity (ROE) of industrial sector firms in the United States and China during the implications of the US-China Trade War. Principal Component Analysis and Random Effects Regression Analysis are employed to empirically test the impact of four Green Supply Chain Management practices which are: Internal Environmental Management, Green Purchasing, Eco Design, and Customer Cooperation on ROE. A sample of 50 firms in the US and 50 firms in China is employed to test the hypothesized relationships. Findings suggest that there is a significant positive relationship between Eco Design and ROE in both countries. However, a significant negative relationship between Internal Environmental Management and ROE is concluded in China only. This research contributes to identifying out and classifying the reported practices of the Green Pillar in firms' Environmental, Social and Governance (ESG) reports under their related Green Supply Chain Management practices to provide a theoretical framework and facilitate future research. This paper proposes that policy makers, managers, and practitioners should accept sustainability as a strategic priority prior to implementing Green Supply Chain Management and suggests that firms should be confident of the long-term profitability of implementing Green Supply Chain Management practices. [ABSTRACT FROM AUTHOR]