Sudden crisis events and firms' stock price fluctuations: A multidimensional heterogeneity perspective

Abstract

This study takes listed companies that have experienced sudden crisis events as samples. The event study method and multiple regression analysis are further adopted to explore the relationship between sudden crisis events and the stock price fluctuations of listed companies from the perspective of multidimensional characteristics. Findings reveal that sudden crisis events have a significant impact on stock price fluctuations. However, the firms' response frequency and response time to crisis events can exert a buffering role in their adverse association. Further analysis shows that the stock price fluctuations also vary with different heterogeneous characteristics including crisis event types, ownership types, firm competitiveness and firm size. The multidimensional analysis targeting the impact of sudden crisis events on the stock market is conducive to helping firms grasp the rhythm of crisis events and further implement some practical and feasible crisis management measures.