Event Title

Stock Recovery After Negative Press

Location

CSU Ballroom

Start Date

21-4-2014 2:00 PM

End Date

21-4-2014 3:30 PM

Student's Major

Management

Student's College

Business

Mentor's Name

Queen Booker

Mentor's Email Address

queen.booker@mnsu.edu

Mentor's Department

Management

Mentor's College

Business

Description

When companies experience a negative event that is covered by the media, it often follows that the stock price falls as a result. The drop in stock price is a partial reaction to the negative news. This study seeks to examine how long it takes for the stock price to recover from a negative event. Data for this study is limited to US based companies that have experienced negative press between 2004 and 2014, and includes the marginal stock price and media coverage regarding steps taken to recover from the negative incident. The data was analyzed using the technical analysis approach. Preliminary results suggest that the stock price changes are directly and significantly related to the amount of media coverage received, which is related to the company’s reputation prior to the incident, the social and environmental cost of the incident and whether class-action lawsuits were filed following the incidents.

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Apr 21st, 2:00 PM Apr 21st, 3:30 PM

Stock Recovery After Negative Press

CSU Ballroom

When companies experience a negative event that is covered by the media, it often follows that the stock price falls as a result. The drop in stock price is a partial reaction to the negative news. This study seeks to examine how long it takes for the stock price to recover from a negative event. Data for this study is limited to US based companies that have experienced negative press between 2004 and 2014, and includes the marginal stock price and media coverage regarding steps taken to recover from the negative incident. The data was analyzed using the technical analysis approach. Preliminary results suggest that the stock price changes are directly and significantly related to the amount of media coverage received, which is related to the company’s reputation prior to the incident, the social and environmental cost of the incident and whether class-action lawsuits were filed following the incidents.

Recommended Citation

Reimer, Gregory. "Stock Recovery After Negative Press." Undergraduate Research Symposium, Mankato, MN, April 21, 2014.
http://cornerstone.lib.mnsu.edu/urs/2014/poster_session_B/29