Izvorni znanstveni članak
https://doi.org/10.1080/1331677X.2023.2179511
State ownership and market reactions to misconduct announcements of Chinese listed firms: a legitimacy perspective
Chenhao Hu
Sažetak
Announcements of corporate misconduct can trigger negative
market reactions. However, our understanding of mechanisms
that shape variations of investors’ responses across different disclosed-
firms is underdeveloped. From the legitimacy theory perspective,
this study focuses on the impact of state ownership on
market reaction to misconduct announcements. Using a sample
of misconduct announcements of Chinese listed firms from 2010
to 2021 and employing a combination of an event study method
and a Heckman two-stage model, this study finds that market
reaction to misconduct announcements is weaker if state ownership
of the disclosed firm is larger. Furthermore, the affiliation
level of SOEs (central SOEs versus local SOEs) weakens the positive
association between state ownership and market reaction.
The main positive effect is strengthened when the disclosed firms
are located in regulated industries.
Ključne riječi
Market reaction; corporate misconduct; state ownership; legitimacy; institutional theory
Hrčak ID:
306504
URI
Datum izdavanja:
31.3.2023.
Posjeta: 126 *