The Influence Of Negative Events Reported By Media On The Market Value Of Enterprises

In recent years,negative events of listed companies in the manufacturing industry have occurred from time to time,and they have become the “hardest-hit areas” for listed companies,increasing public distrust,increasing the risks faced by enterprises,damaging the market value of enterprises,and detrimental to social and economic stability,healthy and sustainable development.On the other hand,as the modernization of supervisory capabilities is deeply advanced,the media has played an important role in information intermediary and corporate governance by paying attention to and reporting on negative corporate events.Therefore,it is of great significance to study the influence of negative events reported by the media on the market value of enterprises.Although the current research on negative events reported by the media has been relatively rich,most of them do not distinguish between negative industry events and company-specific negative events,and there is a relatively lack of general data analysis.When studying the relationship between negative events reported by the media and the market value of enterprises,previous studies have mostly considered how the relationship between the two will be affected by external factors,and less consider the impact of the company’s own factors.In previous studies,corporate social responsibility behaviors were mostly regarded as remedial measures after the media reported negative corporate events,but these studies ignored the “insurancelike” effects produced by early corporate social responsibility performance.After the media reported on the occurrence of negative events,previous studies were mostly based on case studies to do qualitative research to explore what measures companies can take to prevent or reduce the occurrence of negative events.However,quantitative research on how companies respond after incidents has not received sufficient attention.In view of this,based on the effective capital market hypothesis,corporate social responsibility theory and crisis management theory,obtained more than 1.51 million media reports’ news data of eight mainstream financial newspapers and more than 500 other important newspapers and periodicals from 2016 to 2020 through Python,this paper selects the negative events reported by the media of Chinese manufacturing listed enterprises from 2016 to 2020 as the research sample,and uses the event research method to analyze the impact of negative events reported by the media on the market value of enterprises.On this basis,it further studied the influence of corporate social responsibility and crisis public relations abilities on the relationship between media coverage of negative events and the market value of enterprises.In addition to changing the event estimation period and window period,the robustness test also uses Python to crawl online media report news data from 20 mainstream online financial media and more than 400 other important websites,and conduct a replacement test for negative events reported by the media.The research results of this paper show that:(1)The market will react negatively to negative events reported by the media,resulting in a significant decrease in the company’s cumulative abnormal return rate.(2)There is a significant negative correlation between negative events reported by the media and the market value of enterprises.The more media reports of the same negative event on a company,the more serious the damage to the company’s market value will be.(3)The level of performance of corporate social responsibility in the early stage positively regulates the negative relationship between negative events reported by the media and the market value of enterprises.The active performance of social responsibilities in the early stage of the company is conducive to reducing the loss of the market value of enterprises caused by negative events reported by the media,that is,corporate social responsibility has “insurance-like” effects.(4)Crisis public relations ability positively regulates the negative relationship between media reports of negative events and the market value of enterprises.After media reports of negative events,a company’s good crisis public relations capabilities can help reduce the damage to the market value of enterprises,that is,crisis public relations capabilities can weaken the negative relationship between media reports of negative events and the market value of enterprises.The theoretical contributions and innovations of this paper are:(1)Expanded the focus of media coverage of negative events and data acquisition methods,focused on the study of media reported negative corporate events due to the company’s own reasons,and studied the impact of media coverage of negative events on the market value of enterprises on the basis of richer data.(2)Starting from the perspective of pre-control,combined with the local situation in China,it proves the existence of “insurance-like” effects of corporate social responsibility,enriches the role context of the “insurance-like” effect of corporate social responsibility,and expands the research on the results of corporate social responsibility performance.(3)Starting from a post-processing perspective,it further improved the crisis public relations capability evaluation index,and introduced the crisis public relations capability into the corporate governance field.It is believed that the crisis public relations capability also can alleviate the impact of negative events reported by the media on the market value of enterprises.The research conclusions of this paper affirm the information intermediary role and corporate governance role of media reports,provide new evidence support for companies to actively fulfill their social responsibilities,and provide theoretical guidance for listed manufacturing companies in effectively responding to negative media reports and corporate governance.It has important reference significance for maintaining the market value of enterprises.