The Analysis Of Harbin Pharmaceutical Group Holding Company Limited For Market Reaction To Pollution Incident

As China enjoys her high speed economic development, environmentalhazards begin to appear more and more often. These disasters not onlythreaten the sustainable development of economy, but have also become alarge problem to the daily life of Chinese citizens. Recently, some listedcompanies have exposed to environmental pollution incidents, which havecaused strong reaction in the capital markets.Using case analysis and event study methods, this thesis empiricallyanalyses the capital market reaction to the pollution accident of HarbinPharmaceutical Group Holding Co Ltd. On the basis of reviewing thedomestic related research, as well as the cause, process and results of thepollution incident, this thesis analyzed the company performance, capitalstructure, the change of the cumulative abnormal returns in different eventwindows. This thesis also reviewed the capital market reactions to the mediaexposure, corporate announcements, and the government’s handling of the incident. Furthermore, this thesis explored the influence factors of enterprise,media, and government to market reaction. At last, through comparativeanalysis of media supervision, government supervision, legal construction,this article put forward the policy suggestions about how to enforce thecorporate environmental responsibility.