Corporation's Crisis Response Strategy To Product Crisis Harm And Investor's Reaction

On the basis of the literature review,this paper uses the collected product harm crisis events of domestic listed companies from 2007 to 2016,and analyzes the financial market reaction to the different response strategies when the product harm crisis occurs.And the influence of the different crisis response strategies on the performance of the financial market of the company is further studied.In this paper,three conclusions are drawn.The impact of product harm crisis on different enterprises is different,and the positive response strategy under product harm crisis is not always better than negative response strategy,the impact on the food and medicine industries is significantly different with other industries.Therefore,to the financial market investors,it is not reasonable to make negative reaction to all product harm crisis.When product harm crisis occurs,it should further examine the corresponding listed company's asset size,financial status and brand equity and other corporate indicators.For the listed company's managers,when product harm crisis happens,they should take the enterprise's asset size,financial status and brand equity into account,and then get the right expectation of the financial market investors' reaction to the product harm crisis.