Proceedings of the 3d International Conference on Applied Social Science Research

The Market Reaction to Food and Drug Safety Incidents of Listed Companies

Authors
Cheng Dai, Chi Xie
Corresponding Author
Cheng Dai
Available Online August 2016.
DOI
https://doi.org/10.2991/icassr-15.2016.17How to use a DOI?
Keywords
Food safety incident; Drug safety incident; Incident study method; Abnormal return; Cumulative abnormal return
Abstract
In recent years, food and drug safety incidents of listed companies frequently occur. These incidents were not only bring threat to the life safety of consumers and cause the panic of the society, but also cause disastrous loss to involved companies. In this article, by using incident study method, the abnormal return and cumulative abnormal return of the collector 41 involved companies are analyzed. The empirical results show that involved companies’ cumulative abnormal return are significant negative in 35 consecutive trading days after the incidents, and the negative effect lasted until the 120th trading day. The minimum negative cumulative abnormal return is-0.074, which means the average value of accumulated loss of the involved companies, is up to 7.4%.
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Proceedings
3d International Conference on Applied Social Science Research (ICASSR 2015)
Part of series
Advances in Intelligent Systems Research
Publication Date
August 2016
ISBN
978-94-6252-148-3
ISSN
1951-6851
DOI
https://doi.org/10.2991/icassr-15.2016.17How to use a DOI?
Open Access
This is an open access article distributed under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Cheng Dai
AU  - Chi Xie
PY  - 2016/08
DA  - 2016/08
TI  - The Market Reaction to Food and Drug Safety Incidents of Listed Companies
BT  - 3d International Conference on Applied Social Science Research (ICASSR 2015)
PB  - Atlantis Press
SN  - 1951-6851
UR  - https://doi.org/10.2991/icassr-15.2016.17
DO  - https://doi.org/10.2991/icassr-15.2016.17
ID  - Dai2016/08
ER  -