A Study On The Crisis Spillover Effect Of Food Safety Events On Competitive Enterprises

Since ancient times,"food" is the people's livelihood,people regard food as their prime want.But in recent years,due to the development of various additives driven by industry,food safety incidents emerge in an endless stream.In addition to the small food processing plant exposed food safety incidents,many food companies are also implicated in which,followed by media and public opinion,not only have an impact on the crisis,but also on the industry-related competitive enterprises have an impact,that called crisis spillover effect.If the food safety incident occurs,the competition of the enterprise's merchandise sales is decreased,the stock price declines,then the negative effect of the crisis spillover effect is the contagion effect;if the food safety event occurs,The stock price rise,it is considered a positive effect of the crisis spillover effect that the competition effect.In addition to studying the impact of food safety incidents on the market value of crisis enterprises and competitive enterprises,this paper also studies the impact of political connection and charitable donations on the crisis spillover effect before the crisis,from the perspective of institutional theory and corporate social responsibility,I going to conduct a further study to explore the influencing factors.In this paper,eight food safety incidents occurred from 2011 to 2016,involving 62 competitive enterprises,a total of 70 sample data as the research object and using event study method and the relevant social science measurement methods for empirical research,mainly to explore the Four issues:First,after the food safety incident occur,how will the market value of crisis enterprises change;Second,whether the competitive enterprises will be affected by the impact of the crisis,the specific manifestation is contagion effect or competition effect;Third,how the political connection of competitive enterprises will affect the spillover effect of crisis;Fourth,how the competitive enterprise's charitable donations will affect the spillover effect of crisis.Through the relevant empirical research,the following conclusions are obtained:First,the occurrence of food safety event has a negative impact on the market value of the crisis enterprises;Second,the spillover effect of the food safety incident on the competitive enterprises is generally negative effect;the third is the political connection of competitive enterprises has no significant effect on the crisis spillover effect;the fourth is the competitive enterprise before the crisis' charitable donation behavior has positive competition effect to the competitive enterprise;five is the pre-crisis charitable donation strength and the positive competition effect is positively related.To sum up,this article under the context of food safety incidents,conducting a study that the occurrence of food safety incidents will how effect crisis enterprises' and competitive enterprises' market value,in addition,the variables of political connection and charitable donations have been introduced in the study and have made a lot of meaningful conclusions,Which provides enlightenments for the future management and the management of food industry enterprises.At the same time,due to author's limited time and knowledge,this paper puts forward some limitations and future research prospects in final.