Media Rumors,Company Clarification And Market Response Research

The stock market is also an information market.Releasing clarification announcement is an important way for listed companies to cope with the press rumors in markets.Whether the clarification announcement can effectively deal with the press rumors? This paper will study the standpoint of the press and the impact of clarification announcements on short-term market.This article takes the press rumors and the company clarification announcement as the research background.Shanxi Capital Circle released a press rumor talking about Shanxi Coking Company.The rumor described Shanxi Coking Co.,Ltd's two previous acquisitions,49% asset reorganization and equity restructuring of China Coal Huajin was failed,which caused doubts about the third restructuring and elaborated that the third major asset reorganization may fail again.Shanxi Coking Company issued a relevant clarification announcement after 7 days.The clarification announcement provided a detailed answer to the three questions in the media report and issued relevant certificates of various qualifications to illustrate the credibility of the clarification announcement.This paper calculates the press rumor report and the excess return rate and cumulative excess return rate before and after the company clarification by using the event research method,then we analyzed the impact on the short-term market reaction indirectly.Furthermore,we also made analysis on the market's sentiment in combination with the stock price of the day.The study found that press rumors caused the excess returns and cumulative excess returns of listed companies negative,indicating that press rumors have negative effects on short-term market responses.What's more,we observed that the stock price of listed companies on the day of the announcement of the press rumors showed a downward trend,indicating that the market's responses are negative,too.On the contrary,after the company's formal clarification,the value of excess return and accumulated excess return of the listed company will be positive,which means that the press rumors have a positive effect on the short-term market responses.And the stock price of listed companies on the press rumors announcement day showed an upward trend,indicating that the market is in a positive mood towards the clarification.The study also found that the asset reorganization incident was quite significant.And the excess returns and cumulative excess returns were negative after the company issued the clarification announcement,and the stock price was observed to have been falling down.In a word,the company should promptly clarify the press rumors and shouldn't let the public in a negative mood for a long time.