The Impact Of Food Safety Incidents On The Stock Price Drift Of Listed Companies In The Food Industry

General Secretary Xi Jinping pointed out that "there is no moderately prosperous society without the health of the whole people",and people's health must be placed in a strategic position of priority development.The Party Central Committee and the State Council attach great importance to food safety issues related to the national economy and the people's livelihood,especially in the stage of decisive victory in building a well-off society in an all-round way.Food safety incidents not only endanger the health and safety of the people,but also causing panic among market investors and the general public,causing social contradictions to affect social harmony,and more likely to damage the government's credibility and national image.This paper takes the melamine incident as an example to empirically analyze the impact of food safety incidents on the stock price drift of listed companies in the food industry.Seventy-four listed companies in the food industry were selected as research samples to explore the relationship between the outbreak of food safety incidents and the reaction of the capital market in the food industry.By studying the stock price trend of sample companies in the event window and the fluctuation of accumulated abnormal income,this paper probes into the influence of food safety events on the stock price drift of listed companies in food industry and its specific influence mechanism from different angles.According to whether the sample company actively disclosed the social responsibility report and whether the incident related announcement was issued after the incident,the sample data was classified and discussed,and the effect of the information repair strategy and CSR strategy on the trust and repair of the investors in the securities market after the food safety incident is tested.From the perspective of crisis response,what kind of actions the listed companies in the food industry take after the outbreak of food safety incidents will help to restore their reputation and repair investor trust in a timely manner,thereby stabilizing the stock price and working capital flow,realizing the preservation of corporate assets and reducing the risk of financial crisis.The details are as follows:Firstly,the related research background,purpose and significance are introduced through the introduction.Then,the domestic and international researches on food safety incidents,price drift after post-announce announcement and trust repair strategy after product injury crisis are reviewed.It also introduced research methods,research routes,main content and innovations and deficiencies.Secondly,it expounds related concepts and theoretical foundations,including spillover effects,price drift after earnings announcement,effective market theory,portfolio theory,information asymmetry theory and behavioral finance theory,which provide a solid theoretical basis for subsequent research.Thirdly,the cause and effect of the melamine incident were introduced in detail.From the background of the incident,the development process to the market reaction,the response measures and the reflection of the incident,this case was thoroughly analyzed.Then it is the research design of this paper.Firstly,the research hypothesis,setting model,selected samples,and then data processing to calculate expected returns,abnormal returns,cumulative abnormal returns,etc.,and the statistical significance of abnormal returns are tested.Sample classification studies were conducted based on different indicators.Then,according to the results of the model,the relevant theories are discussed and analyzed,and the conclusions of this paper are obtained.Finally,based on the research conclusions of this paper,the relevant suggestions of different responsible subjects based on social co-governance are put forward to help manage food safety issues,enhance the risk awareness of corporate financial crisis and improve the food safety related information disclosure supervision mechanism in the securities market,safeguard the people's “security on the tongue”,and effectively improve people's happiness,sense of acquisition and safety.