ABSTRACT This study explores whether sustainable supply chain practices are related to the cost of equity capital and the roles of blockholder ownership and geopolitical risk in this relationship. Using a sample of listed firms from 29 emerging markets between 2002 and 2021, we find that better sustainable supply chain practices are associated with lower cost of equity capital. Additionally, we document that blockholder ownership intensifies this relationship, while high geopolitical risk attenuates the benefits of good sustainable supply chain practices in reducing cost of equity capital. Our findings are robust to alternative measures of key variables, various subsamples, and considerations of endogeneity. This study underscores the significance of promoting sustainable supply chain practices to reduce equity financing costs.
Nguyen et al. (2026) studied this question.