Spillover Effect Of Organization Crisis And The Dynamic Impact Of Slack

Business crisis not only hurt the company itself,its impact is likely to spread to other companies within the same industry;we call this phenomenon "Spillover of Negative Impacts".The "2008 Melamine-contaminated Milk Accident","2011 Rear-end Collision Accident" and "2012 Jiugui Liquor Events" all reflect this fact.At the same time,we also found that the impact of the crisis spillover is different from different companies,even is not always negative,for some enterprises the impact is positive.For example,during“2008 Melamine-contaminated Milk Accident",most of food enterprises especially the milk enterprises had been seriously negative impacted.Because not been detected melamine from it production,Sanyuan Milk gets the opportunity from the accident and developed into a large food processing company.So we want to answer the questions like is:Why a business crisis of a company will spill over to other enterprises?Why the spillover effect of crisis will show great individual differences or differences in the industry?In recent years,the business crisis events occur frequently in our country,so it becomes more and more important to study Spillover of Negative Impacts.Based on the stakeholder theory,combined with behavioral finance research,this paper use"2011 Rear-end Collision Accident" as a sample to study spillover effect of organization crisis and the moderate of slack.(1)This paper studies the fluctuations of the stock price of the same industry company to prove the "Spillover Effect of Crisis" is existence during "2011 Rear-end Collision Accident".(2)This paper use regression analysis method to study the mechanism of the negative spillover effects(3)According to the flexibility,this paper classfy the organizational slack to two different kind slack.They are High discretion slack and Low discretion slack.This paper use of hierarchical regression method to study the dynamic effect of these two slaks to the Spillover Effect of Crisis.This study draws the main conclusions as following:First,we study the negative spillover effects of corporate crisis and found following conclusions.Ngative spillover effects will changed following the days after the crisis.If target company have the similar characteristics with the crisis enterprises,it will have the negative spillover effects.Second,after the company crisis,negative spillover effects reduced follow the time.Third,we found that if the target companies have the slck will affect the ngative spillover.High discretion slack resources will reduce the negative spillover effects and Low discretion slack resources will aggravate negative spillover effects.This impact will change with the time.This study combines the theory in the field of psychology and finance,and has some exploratory.The value of this research as following:First,although the foreign scholars already have a lot of studys which is about the crisis spillover phenomenon,but few researchs is in china.From the relevant foreign research results,we combined with the special characteristic of Chinese manager,our study have important significance to other scholars.Second,most researchers believe that,during the crisis situations,slck have positive effect.But this study found that,in the context of crisis spillovers,high flexibility of redundant resources can reduce the negative spillover,but Low discretion slack resources will aggravate negative spillover effects.This conclution may have some innovations on the research topics and research perspective.Third,this study based on the theory of financial stakeholders and behavior,from the perspective of redundant resources point of view for the first time.This study deepening the study on crisis spillover effect.Finally,in recent years China enterprise crisis accidents happen frequently,which makes the enterprise crisis more and more important.Our study will have a lot of important suggestions to government,inverstor and company manager.