• xmlui.mirage2.page-structure.header.title
    • français
    • English
  • Help
  • Login
  • Language 
    • Français
    • English
View Item 
  •   BIRD Home
  • DRM (UMR CNRS 7088)
  • DRM : Publications
  • View Item
  •   BIRD Home
  • DRM (UMR CNRS 7088)
  • DRM : Publications
  • View Item
JavaScript is disabled for your browser. Some features of this site may not work without it.

Browse

BIRDResearch centres & CollectionsBy Issue DateAuthorsTitlesTypeThis CollectionBy Issue DateAuthorsTitlesType

My Account

LoginRegister

Statistics

Most Popular ItemsStatistics by CountryMost Popular Authors
Thumbnail

Unexpected Media Coverage and Stock Market Outcomes : Evidence from Chemical Disasters

Laguna, Marie-Aude (2010-10), Unexpected Media Coverage and Stock Market Outcomes : Evidence from Chemical Disasters, 2010 FMA Annual Meeting, 2010-10, New York, États-Unis

View/Open
D462A4BBd01.pdf (705.9Kb)
Type
Communication / Conférence
Date
2010-10
Conference title
2010 FMA Annual Meeting
Conference date
2010-10
Conference city
New York
Conference country
États-Unis
Pages
29
Metadata
Show full item record
Author(s)
Laguna, Marie-Aude
Abstract (EN)
Using the event-study methodology and multivariate regressions, this paper examines the intensity of media coverage, its determinants and its marginal effect on stock returns following chemical disasters. To do this, we build an original dataset of chemical explosions that occurred worldwide from 1990-2005. First, our results show that news coverage increases with the social and environmental consequences of the accident. Second, to deal with the fact that news coverage is determined simultaneously with stock returns, we suggest two valid and original instrumental variables: a measure of the firm’s newsworthiness and a measure of daily news pressure at the time of the disaster. We find that unexpected news coverage due to chemical disasters also respond to these conjunctural factors, and is truly exogenous to abnormal returns. Third, we show that, all else being equal (pollution, number of casualties, and firm profile), the stock market reaction to intense press coverage is delayed, and becomes negative in the long-term. At the same time, there is clear evidence that in the first days news coverage mitigates the market value losses. We interpret these results as evidence that investors are slow to recognize the extent of the loss associated with the public implications of news coverage (e.g., image and public trust deterioration). In addition, in contrast toprevious studies, we argue that press coverage is not necessarily associated with increased investor attention.
Subjects / Keywords
Corporate Social Responsibility; Pollution; Media; Efficient Market Hypothesis; Behavioral Finance
JEL
G12 - Asset Pricing; Trading Volume; Bond Interest Rates
G14 - Information and Market Efficiency; Event Studies; Insider Trading
G30 - General
M30 - General

Related items

Showing items related by title and author.

  • Thumbnail
    How does the stock market respond to chemical disasters? 
    Capelle-Blancard, Gunther; Laguna, Marie-Aude (2010) Article accepté pour publication ou publié
  • Thumbnail
    News Pressure, Public Image, and Firm Stock Market Value 
    Laguna, Marie-Aude (2009) Communication / Conférence
  • Thumbnail
    Les médias font-ils la Bourse? 
    Laguna, Marie-Aude (2016) Chapitre d'ouvrage
  • Thumbnail
    Financial and Non-Financial Risk Management 
    Laguna, Marie-Aude; Williams, Ryan (2019) Communication / Conférence
  • Thumbnail
    Negative Press and Corporate Policy 
    Laguna, Marie-Aude (2018) Communication / Conférence
Dauphine PSL Bibliothèque logo
Place du Maréchal de Lattre de Tassigny 75775 Paris Cedex 16
Phone: 01 44 05 40 94
Contact
Dauphine PSL logoEQUIS logoCreative Commons logo