| In recent years, frequent occurrence of disaster events makes it more and more important to respond to disasters properly. Having a look into the announcements made by affected companies after disasters, we found that managers from different companies always react differently:some admit the influence and take positive actions, while others deny the influence and perform passively.But in the past, only Alfred and Robert (1991) have researched the impact of management responding ways on stock returns, other academics always focused their research on accounting, auditing and equity information. This article also adopted the definition of Alfred and Robert (1991),so we distinguished two kinds of responding ways: accommodative way and defensive way. By an accommodative way, we mean a statement in which management accepts responsibility, admits the existence of problems and takes actions to remedy a situation. A defensive way is a statement in which management insists that the problems do not exist, tries to alleviate doubts about the firm's ability to generate future revenue, and takes action to resume normal operations rapidly.This paper takes the snow damage and earthquake of 2008 for example, studies the relationship between the ways how the managers publicly respond to the disasters and the stock returns, and also studies the moderation effect of the affected degree and reputation of listed companies. Based on the public announcements of listed companies, the results show that the affected degree significantly moderates the relationship between management responding ways and stock returns in the short and medium term, but the moderation effect of reputation isn't significant.This study has enriched the research achievements of disasters and information disclosure. The conclusion is meaningful for helping companies to act properly after disasters, investors to make correct investment decisions and stock market management departments to regulate the behavior of information disclosure. |
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