Stock Market's Reactions to Industrial Accidents: Evidence from Chinese Listed Companies

Jiuchang Wei, Han Wang and Xiumei Guo
Additional contact information
Jiuchang Wei: School of Management, University of Science and Technology of China, Hefei, Anhui, China
Han Wang: School of Management, University of Science and Technology of China, Hefei, Anhui, China
Xiumei Guo: Curtin University Sustainability Policy Institute, Curtin University of Technology, Perth, Australia

International Journal of Business Analytics (IJBAN), 2014, vol. 1, issue 2, 18-33

Abstract: This study attempts to explore whether and how stock market responds to industrial accidents. We employ the event study method to look into the responses of stock markets to 83 accidents experienced by various listed companies in China, and explore how industrial accidents influence stock market in the different markets. Findings imply that the stock market shows negative reaction with respect to these accidents. However, as time goes by, the market reaction tapers off. In the bear market, the negative market reaction was highly significant. Small-sized companies, in comparison with other companies, have a most significant reaction to accidents and they also have the worst ability to recover from accidents. The findings of this study can help the investors to better understand how the stock market reacts to the industrial accidents in different market environments and under other conditions.

Date: 2014
References: Add references at CitEc
Citations:

Downloads: (external link)
http://services.igi-global.com/resolvedoi/resolve. ... 018/ijban.2014040102 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:igg:jban00:v:1:y:2014:i:2:p:18-33

Access Statistics for this article

International Journal of Business Analytics (IJBAN) is currently edited by John Wang

More articles in International Journal of Business Analytics (IJBAN) from IGI Global
Bibliographic data for series maintained by Journal Editor ().