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  • Reported corporate misconducts [Elektronski vir] : the impacts on the financial markets
    Ichev, Riste
    This study empirically examines how reported corporate misconducts affect the stock returns of US firms. As the reported misconducts are broadcasted in the newspaper outlets, the cumulative abnormal ... return (CAR) is -4.1%. Involvement in a reported corporate misconduct gets punished by market participants especially when the act of reported misconduct is blamed on the level of the corporation rather than in involvement of a specific individual, when reported misconducts take place in the home market, and when the linguistic tone used in the newspaper article is negative. Financial penalties imposed, firm size, leverage, revenue growth, and the level of firm foreign exposure are found to have significant impact on the returns during the period of observation. The results suggest that investors recognize the importance to penalize firms in the financial markets when firms act unethically.
    Source: PloS one [Elektronski vir]. - ISSN 1932-6203 (Vol. 18, iss. 2, article no. e0276637, 2023, 12 str.)
    Type of material - e-article
    Publish date - 2023
    Language - english
    COBISS.SI-ID - 125803523

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    Repository of the University of Ljubljana – RUL
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