Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Corporate accidents, media coverage, and stock market responses Empirical study of the Chinese listed firms

Corporate accidents, media coverage, and stock market responses Empirical study of the Chinese... Purpose – This study aims to explore the mutual relation of corporate accidents, stock market responses, and media coverage. Design/methodology/approach – This paper empirically investigated 119 listed firms' accidents during the 2005‐2012 period using the methods of event study, correlation analysis, and multiple regressions. Findings – The stock market response and media response are independent with each other in the following 30 days after accidents. Corporate accidents have significant negative effects on the stock market responses. As time goes by, the market reaction tapers off. In a mediate term period, accident onset has significantly positive effect and firm's ownership has weakly positive effect in addition to factors of asset and number of shareholders. Originality/value – This paper first examines the interrelationships among accidents, media coverage, and stock market responses. It is part of the corporate social responsibility to avoid or reduce the stakeholders' nervous behaviors in times of accident. Hence, accident‐stricken firms should release sufficient and transparent information to shareholders so that they can trade the share more rationally. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Chinese Management Studies Emerald Publishing

Corporate accidents, media coverage, and stock market responses Empirical study of the Chinese listed firms

Chinese Management Studies , Volume 7 (4): 14 – Nov 15, 2013

Loading next page...
 
/lp/emerald-publishing/corporate-accidents-media-coverage-and-stock-market-responses-9RJXQKW0pS

References (62)

Publisher
Emerald Publishing
Copyright
Copyright © 2013 Emerald Group Publishing Limited. All rights reserved.
ISSN
1750-614X
DOI
10.1108/CMS-09-2013-0171
Publisher site
See Article on Publisher Site

Abstract

Purpose – This study aims to explore the mutual relation of corporate accidents, stock market responses, and media coverage. Design/methodology/approach – This paper empirically investigated 119 listed firms' accidents during the 2005‐2012 period using the methods of event study, correlation analysis, and multiple regressions. Findings – The stock market response and media response are independent with each other in the following 30 days after accidents. Corporate accidents have significant negative effects on the stock market responses. As time goes by, the market reaction tapers off. In a mediate term period, accident onset has significantly positive effect and firm's ownership has weakly positive effect in addition to factors of asset and number of shareholders. Originality/value – This paper first examines the interrelationships among accidents, media coverage, and stock market responses. It is part of the corporate social responsibility to avoid or reduce the stakeholders' nervous behaviors in times of accident. Hence, accident‐stricken firms should release sufficient and transparent information to shareholders so that they can trade the share more rationally.

Journal

Chinese Management StudiesEmerald Publishing

Published: Nov 15, 2013

Keywords: Stock market; Accidents; Event study; Listed firms; Media coverage

There are no references for this article.