Abstract

Purpose: The study seeks to empirically evaluate how the COVID-19 pandemic has affected the value relevance of companies within the logistics and distribution industries. It specifically investigates how digital transformation and the implementation of Smart supply chain management (SCM) responded to the heightened complexity of logistics processes in the post-pandemic environment and whether these systems contributed to an increase or decrease in value relevance. Research design, data and methodology: Using Ohlson's (1995) valuation model, we analyze how the value relevance of accounting information in the logistics and distribution industry has changed during the post-COVID period from 2020 to 2023. This period is characterized by disruptions such as supply chain interruptions, labor shortages, and shifts in consumer demand, resulting in delayed shipments and increased operational costs, which likely impact the firm's value relevance. Results: Despite increases in earnings and book values in the logistics industry post-COVID-19, the value relevance of these metrics declined. Conclusions: The rapid digitalization and implementation of smart SCM have introduced complexities and heightened risks, which may have raised concerns among investors. Additionally, there has been a shift in focus toward non-financial factors, such as ESG concerns and technological competitiveness, suggesting that traditional financial metrics inadequately capture a firm's value.