A Research On Market Reaction Of Employees Safety Accidents Information Exposure

Enterprises to undertake the necessary social responsibility and strengthen theconstruction of internal control of corporate social responsibility when pursuingeconomic interests is not only the public，s common requirement, but also the power ofsustainable development for enterprises. Employees safety accidents belong to thescope of negative corporate social responsibility incidents, a large number of factsindicate that, enterprises violated the social responsibility, damaged the interests ofstakeholders, not only will make a negative impact on the image and reputation, butalso will get punishment by the capital market, resulting in the loss of shareholderwealth. In term of employees safety accidents, labor，as one of the major factors ofproduction，is not only one of the sources of core competence but also the preciouswealth of the social development. Therefore，to ensure employees，safety conditions isnot only beneficial to enterprise，s normal business operations and futuredevelopment，but also good to the harmony and stability of the society. In contrast, theoccurrence of safety accidents, not only hinder the normal business of enterprises, butalso contrary to our concept of people-oriented, not only enterprises to be penalizedbut also to be a stumbling block of the process to the harmonious society, therefore, itis necessary to urge enterprises to strengthen management of safety production, inorder to reduce or avoid employees safety accidents. However the current academicresearches about employees safety accidents mainly use normative research method,compared with empirical researches, the incentive effect to urge enterprises to activelyundertake the social responsibility and strengthen the construction of internal controlof corporate social responsibility is relative small.This paper chooses the58employees safety accidents with personal injury ofA-share listed companies during2002to2012as research samples，with the sameindustry enterprises as paired samples，a total of2172samples, using event studymethod to analysis the market reactions of capital markets to enterprise employeessafety accidents. The empirical results show that: after the employees safety accidents,compared with other companies in the same industry, capital markets exhibitsignificant negative reaction to enterprises occurring employees safety accidents,reducing the shareholder wealth, reflecting the disciplinary effect of investors toenterprises that did not undertake the necessary social responsibility. The result alsoshows that investors may consider that such enterprises may exist deficiencies ininternal control of corporate social responsibility and the information disclosuresystem is imperfect, the stock investments to such enterprises may have greaterinvestment risks. Meanwhile, this also exerts some pressure to managers and indicatesmanagers to pay attention to safety production issues, strengthen the construction ofsocial responsibility internal control such as the safety production systems, safetyproduction culture and information disclosure system, establish the concept of safetyproduction, positively to commit social responsibility, in order to avoid the occurrence of employees safety accidents effectively.