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.
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.
https://cornerstone.lib.mnsu.edu/urs/2014/poster_session_B/29
