The Influence On The Stock Price And The Listing Process Of Company By The Negative Public Opinion

This paper analyzed the characteristics and the concept of public opinion inthe capital market, summarizedthe routes of the generation andcommunication of public opinion, and then discussed the impact of thenegative public opinion on listing process and stock price of acompanyfromtwodirections. First, based on the analysis of the impacts ofnegative public opinion on the listing process of pre-IPO company, we foundthat negative public opinion is significantly correlated with thetime-consuming and the pass rate during the process of listing. Then thispaperdeeply analyzed three representative cases to support the study found:Fujian guizhentang Limited by Share Ltd was suspended because of "live bearbile"; ShengjingShanhe Limited by Share Ltd was temporarily suspended thelisting process before the quotation for its financial fraud suspect ion; BalingTechnology Co.,ltd undergone a few times of public opinion events beforefinally successful listing, the real reason was its Lack of inquiry.Second, fromthesecondary market, namelythe directionfrom company’s stock price andmarket value changes, chose thirty typical cases to analyzethe impacts ofnegative public opinion on the stock price and the market value of listedcompanies, including the hottest fifteen events in2012as well as the hottestfifteen events in the first quarter of2013of public opinion.The paperinvestigated the performance of the company stock in the secondary marketafter the occurrence of the30events，analyzed the challenge fromthe changescaused by the rise of social media and network technology ever-improvingcasesin public opinion environmentfaced by the Chinese a-share listedcompaniesfrom the breadth, and also discussed the present situation andexisting problems of public opinion management in most of the listedcompanies in China. Finally pointed out that under the existing public opinionenvironment, China’s A-share listed companies should establish effectivemanagement mechanism, deepen the internal public opinion managementprocess, and establish communication with the media and the public in anhonest and correct way.