Study Of The Market Reaction Degree Of Accidental Death Of Senior Executives And Its Impact Factors

In recent years,accidental death of senior executives(ADSE)frequently happened in our country,such as the accidental death of Chen Hongqiao,the death of Gao Qingchang who jumped off a building and accidental death of Wang Pingang etc.According to the review on previous domestic and overseas' studies on the impact of ADSE and its influence to companies on share price showed some contradictory results:some suggested that ADSE event could,however result on positive financial influence to the company,while others suggested the opposite.On the aspect of accounting information's influence,domestic researches on share price,have already reached on detailed information related to the passive indexes on share price;most researchers suggested that good financial index would bring a positive influence to the company.Although senior executives are regarded as important resource of the companies,whether their accidental death would bring negative influence on share price;which are the financial indexes can be able to stabilize share price to the company in case of ADSE,and what could help to avoid investment risks are not defined.For this matter,in this study,we collected relevant data on 102“A”companies which experienced ADSE from 2000 to 2015 and used the event study method to analyze the impact on the market reaction variation due to ADSE.Our study found that ADSE would influence the company on share price at various levels.Additionally,our study used 4 classes of indexing system such as profitability,debt paying ability,operation ability and growth ability as starting points and targeted eight financial indexes to study the industrial variables and yearly variables on the influence of the market's reaction.Through the multiple regression analysis,our study found that,debt paying ability and growth ability are remarkably related to share price fluctuation.It means that good debt paying ability and growth ability can help companies to reduce the negative influences due to ADSE,although others indexes could also reduce the influence,however,they could not pass the significance test.Therefore,our study provided useful advices to companies and investors according to the realities of domestic capital market linked to our studies' findings.