M. Ferretti and E. Ziccardi (Italy)
Crisis Management, Shock Event, Event Study
This paper examines the impact of shock events on interested companies' common stock prices. A shock event is an unpredictable situation, which occurs suddenly and quickly and causes serious damages to the firm and its stakeholders. The `event study' methodology has been used. The results of the study show that shock events have a significant negative effect on the event day; it also emerges a smaller but significant effect on the five following days. Drivers of value destruction are also investigated.
Important Links:
Go Back
