ESG rating divergence and the bullwhip effect: evidence from Chinese supply chains

This study examines the impact of ESG rating divergence on the supply chain bullwhip effect using data from Chinese A-share firms between 2015 and 2022. The results show that greater ESG rating divergence significantly amplifies the bullwhip effect, reflecting greater volatility in supply chain operations. Mechanism analysis reveals two key channels: reduced stability in buyer–supplier relationships and increased volatility in production input decisions. These findings highlight the real-economy implications of inconsistent ESG information and underscore the importance of reliable and comparable ESG disclosure for maintaining supply chain stability.