| For Chinese listed corporations,the product quality events have been last for a long time.Different from other events,the product quality events may widely exist in the all industry.People may have question about other associated competitive corporations in the same industry of the same product quality event at the same time.That will certainly influence the stable development of the industry.If the quality incident happened by the negative effects,performance by the company's shares fell,shrinking sales revenue,etc.,we cause this"contagion effect”,if the same industry company for product quality events affected by positive effects,performance by the company's share price rise,the increase in stock value,sales increase,etc.,can be called the "competitive effect".Contagion effect and competition effect are collectively referred to as the information effect,which means the value change and operating condition change of corporations due to the events.On the factors of product quality events,the available literature only selected capital structure,degree of legal protection,information transparency,company size,main business types,current ratio and interfering mode,without the cash flow factor and corporation governance factor.Therefore,how to use the cash flow,which closely relates to the enterprise operation performance,and the corporation governance,which relates to the company's managers and shareholders to analysis the influence of enterprise product quality incidents is the emphasis of this paper.This paper researches the influence to business performance,stock price of Tonghua gold horse "toxic capsules" event to study the influence to information effects of product quality event by theoretical analysis,event study and empirical test.Through the design of empirical research and the results,this paper found that good corporate governance,good cash flow will help the company to resist the negative impact of industry product quality events' information negative effects,and make the information competitive effects.The conclusion of this paper will provide reference and advice to improve the protection abilities to negative impact of product quality incident.To the investors and clients,this paper also provides the reference to make sure investment risks and benefits of decision-making in advance. |
