The Impact of Black Swan Events on Stock Prices: Evidence from the Melamine Incident in China

The influence of melamine incident on dairy industry in 2008 was investigated, and the control effect of different enterprises on the black swan incident was analyzed. First of all, this paper analyzes the impact of the stock of listed companies in the dairy industry after the black swan incident, a...

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Bibliographic Details
Main Author: ZHU Wenjian
Format: Article
Language:English
Published: EDP Sciences 2020-01-01
Series:E3S Web of Conferences
Online Access:https://www.e3s-conferences.org/articles/e3sconf/pdf/2020/74/e3sconf_ebldm2020_03019.pdf
Description
Summary:The influence of melamine incident on dairy industry in 2008 was investigated, and the control effect of different enterprises on the black swan incident was analyzed. First of all, this paper analyzes the impact of the stock of listed companies in the dairy industry after the black swan incident, and compares the impact of the different risk treatment of several leading enterprises on the stock price recovery. The results show that: first, the melamine incident has a negative effect on the enterprises involved, and the enterprises involved do not have a competitive advantage. Second, in the same period, enterprises pay more attention to the influence of black swan event and take more powerful measures. The greater the risk treatment intensity is, the less the influence of black swan event will be. Third, the two enterprises have similar risk handling strength. The faster the response to risk events, the earlier the processing time, and the less affected by the black swan event.
ISSN:2267-1242