The Impact Of Scandal Information Disclosure On The Capital Market Return Of Listed Companies In The Food Industry

In China,the product safety problem of food enterprises has always existed.The product safety problem has a very serious negative impact on food enterprises.The most prominent performance is to make consumers and investors panic.When people worry about the negative problems of enterprises,they will also worry about whether the same industry companies have similar problems.Scandal information is generally called negative news.It refers to an event that causes public opinion to shout loudly or arouse public indignation due to crime,bad reputation,or immorality.It aims to attract the public's attention to the publicity target.This publicity has a negative impact on the enterprises related to the scandal.If other companies in the same industry are negatively affected by the scandal,the share price of the company's stock begins to fall,the market value begins to fall,and the sales revenue and sales volume of the company's products shrink,we call it the "contagion effect" of the scandal information disclosure;if other companies in the same industry are not negatively affected by the scandal,they benefit from it,specifically,the stock We call it the "competitive effect" of scandal information disclosure.In recent years,many food safety incidents have been exposed in China.By studying the food industry,we can not only understand the impact of the companies in question on other companies in the same industry,but also observe the change rule of their impact.So that other companies in the industry can learn from each other and provide advice to the government,news media and the public.This paper discusses the disclosure of plasticizer event of Jiugui Liquor on November19,2012 and takes this event as the research event.102 listed companies related to the food industry are selected as samples of Companies in the same industry,and the impact of this event is analyzed and discussed by using the event study method.We choose the 220 th day before the event date to the 21 st day before the event date as the "estimation window" and the 20 th day before the event date to the 20 th day after the event date as the "event window".The model uses the stock return market model to analyze.In the empirical study of event study method,the test indicators used are cumulative excess return,standardized average cumulative excess return and their test statistics.This paper mainly studies two aspects: first,the individual effect of scandal information disclosure on sample companies in the same industry is significant;second,the overall effect of scandal information disclosure on sample companies in the same industry is significant.By observing the response of the stock market,we analyze and study the contagion effect and competition effect.After regression processingof the data,explain the changes of cumulative excess return and standardized average cumulative excess return,judge the individual impact of scandal information disclosure on the capital market return of food listed companies and the overall impact on the capital market return of food industry.Furthermore,the following conclusions are drawn:(1)the contagion effect and competition effect have a significant impact on the sample companies in the food industry.(2)The contagion effect and competition effect have a significant impact on the sample companies in the food industry.(3)After the scandal,the average cumulative abnormal return of food companies is significantly negative.(4)Besides JiuGuiJiu,the listed companies in the liquor industry in the food industry are affected by the contagion effect.(5)In the food industry,the listed companies of liquor industry in Africa are affected by the contagion effect.(6)The infection effect of liquor industry is stronger than that of non liquor industry.(7)China's securities market is still in a weak form of efficiency.At last,we get the suggestions to the listed companies,the government,the news media and the public.Listed companies in the food industry should strengthen the research and management of food supply chain,improve product quality,improve social responsibility awareness,and strengthen financial management;the government should improve the food safety laws and regulations system,strengthen the construction of information service network system,improve the joint punishment and punishment mechanism for food safety dishonesty,and strengthen the supervision of food safety information disclosure;news media should dare to expose the truth and be fair Transparent transmission of information;the public should enhance food safety awareness and rational investment.