Social Responsibility Event,the Nature Of The Enterprise,and The Stock Market Reaction

With the continuous economic development in our country,social responsibility issues concerning inferior commodities,environmental pollution and so on constantly catch our attention.As we focus on accusing enterprises involved,corporate social responsibility consciousness is gradually coming to public sight.However,corporations involved suffer not only enormous reputation damage,but also continuous operation crises.Scholars usually draw attention to corporations involved in an individual sight without concerning how a particular industry is affected.Thus,most studies about market punishment mechanisms are limited to a small scope with their findings difficult to generalize.Moreover,vertical comparison is seldom made by just ignoring the market reactions to similar social responsibility events.This paper,however,with comparing "Songhua River incident" in 2005 to "Tianjin explosions event" in 2015,aims to study capital market punishment mechanisms in chemical industry.In the first place,explanations about study background,techniques and its significance are presented.Moreover,theories about corporate social responsibility are commented in detail.Furthermore,based on previous finding and my understandings about related issues,hypotheses are logically reasoned.Additionally,my findings and concerns about this paper are presented subsequently.The outlined findings are as follows.When a corporate social responsibility event arises,no matter it is "Songhua River incident" in 2005 or "Tianjin explosions event" in 2015,the cumulative abnormal returns in chemical industry are significantly negative.The punishing effect in 2015 is evidently enhanced,which indicates the capital market punishment mechanisms are gradual to mature.In addition,ownership structure significantly influences the promotion of punishment mechanisms.Specifically,state-owned enterprises seem to have privilege in the more rigorous punishment mechanisms,which can be shown in the vertical changes between the two events above.