The Influence Of Media Coverage On Stock Price Under Corporate Image Repair Strategy Research

With the development of the stock market and the continuous in-depth study of investors' investment behavior by scholars,the research on stock price fluctuation is also increasing gradually.There are many factors that influence stock price fluctuations,such as market economic environment,investor sentiment,bank interest rate and other factors,while media reports are one of the important factors that lead to stock price fluctuations.Media plays a very important role in corporate governance,external supervision and many other aspects.Due to the information asymmetry in China's stock market,and with the rapid development of new media,the role of media reports on the transmission of information on the stock market is more obvious.Media reports can attract investors by disclosing the information of listed companies,and investors can obtain relevant information timely and efficiently through the media,and have an impact on the fluctuation of stock prices.For an enterprise,its image and reputation are the most important intangible assets.However,in recent years,there have been numerous malignant emergencies in Chinese enterprises.After the occurrence of these incidents,media reports have attracted the attention of a large number of investors.Enterprises often have a great impact on their corporate image because of improper handling of such incidents.This thesis aimed at the media reports,the share price volatility and the theory of image restoration related literature was summarized and the combing and sorting system,and then based on investor sentiment theory,behavioral finance,and image restoration theory as the theoretical support,to people's livelihood bank "false financial" event study reports on the fluctuation of stock price,and according to the theory of image restoration research of minsheng bank to take repair strategy.This thesis first studies the impact of media reports on stock prices through the event study method.Through octopus crawler technology,I crawled all media reports about China Minsheng Bank in 2017 on Baidu search engine,and confirmed the event window according to the announcement issued by China Minsheng Bank on April 18.In the event window,the change of excess return rate and cumulative excess return rate of Minsheng Bank were analyzed with the change of media reports.The conclusion is: sudden and malignant events will lead to the rapid increase of media coverage,the more media coverage,the greater the volatility of stock price;The more negative media coverage,the faster the excess rate of return and cumulative excess rate of return decline.Secondly,based on the theory of image restoration,this thesis analyzes the restoration strategies adopted by Minsheng Bank.From the perspective of overall strategy,Minsheng Bank mainly relied on the strategy of reducing the impact of the crisis event,acknowledging the vicious event and providing relevant information to solve it.From the perspective of segmentation strategy,Minsheng Bank mainly emphasizes the positive image,reduces the damage,recognition and other strategies.Through the analysis of stock price volatility and the study of different window periods,it is found that the growth of the repair strategy has a certain impact on the stock price fluctuation,but the short-term operating performance analysis of Minsheng Bank has not been greatly affected,which is mainly due to the active response of Minsheng Bank.The innovation of this thesis lies in that the researches on stock prices reported by the media are mostly based on empirical analysis.However,this thesis analyzes the case of Minsheng Bank and analyzes the repair strategies adopted by Minsheng Bank in the face of malignant events with the help of image restoration theory and analyzes the effectiveness of the strategies.