Study On The Spillover Effect Of Food Safety Incidents On The Stock Market

In recent years, food safety incidents have been continuously. The steady and orderly development of food industry not only provides a good environment for the development of food enterprises, but also has a very important significance for the stability of food market and the whole society. The negative impact of food safety incidents is obvious, the most prominent of which is to give investors and the public to bring panic. People questioned the occurrence of food safety incidents in the enterprise, will certainly be implicated in other similar business enterprise.The negative impact of food safety incidents is obvious, the most prominent of which is to give investors and the public to bring panic. If other companies have a negative impact on food safety incidents, such as the decline in stock prices, the decline in market value, sales and sales, we call it the "contagion effect" of food safety incidents ". On the contrary, if other companies have a positive impact on food safety incidents, such as the rise in stock prices, market value, sales and the increase in sales, we call it the " competitive effect " of food safety incidents ". This paper mainly focuses on the food safety incidents in the securities market, the industry stocks, industry categories and the industry as a whole "contagion effect" and "competitive effect" is discussed.Previous research scholars have studied the food industry, but the negative impact of food safety incidents from a single point of view of consumers or the incident. This paper mainly studies the spillover effect of food safety incidents on the stock market. Not only observe the impact of food safety incidents to other listing Corporation and similar industries in the industry, but also to explore other enterprises by the food safety incident after the change process.In this paper, the 2012 November 19, is the 21 st century network exposure of Jiugui Liquor plasticizer event as the object of study, select the liquor industry is the same listed companies and non liquor brewing industry listed companies as the research sample, using event study method for empirical research. This article mainly uses the event study method, through the empirical research, to analyze the related earnings ratio index and the statistic, and discusses the following aspects:(1) the impact of food safety incidents on the individual effects of the same industry listing Corporation, the main index is the cumulative abnormal returns and test statistics;(2) the occurrence of food safety incidents of different grades of the brand’s category, the main index is the cumulative abnormal returns and test statistics;(3) the occurrence of food safety incidents in the same industry as a whole, the main study is the standard rate of abnormal returns and statistics;(4) the overall effect of food safety incidents on the competition industry, the main index is also the standard of abnormal returns and statistics. Through the relevant statistical test, it is concluded that the Sample Firms is subject to the impact of the food safety incident spillover effect, and then combined with the enterprise’s own business situation, the application of the main business income of the two aspects of the situation and spillover effects of the performance of the form.Through empirical research, draw the relevant conclusions:(1) the occurrence of food safety incidents, the majority of the same industry listing Corporation will cause a more significant infection.(2) the occurrence of food safety incidents, the same industry, different brands have different spillover effect. Generally speaking, food safety incident will cause significant contagion effect on the brand of the enterprise in the incident and the higher the brand.(3) the occurrence of food safety incidents, the industry as a whole will result in a more significant spillover effect, and the infection is greater than the effect of competition.(4) the occurrence of food safety incidents, the overall spillover effect of the replacement goods industry is not significant.The alcoholic liquor plasticizer event, for example, food safety incidents on Spillover Effect of stock market for related research. Multi angle and multi aspect to understand the occurrence of food safety incidents, the overall impact of the industry listing Corporation, the type, the overall and alternative industries, and draw conclusions for the enterprise to deal with the negative impact of the crisis and provide an effective reference, and to provide reference for the decision-making and the government to formulate relevant policies.