Presentation Information
[A-12-07]Determinants of Corporate Value Destruction Caused by Scandals
◎Maho Tsuda1, Shinya Nogami1 (1. Tokyo University of Science)
Keywords:
Potential brand assets,Corporate scandal,Corporate value,business risk
In recent years, corporate scandals spread instantly through social media, becoming a serious management risk that can affect the brand's value. However, when you look closely, there’s a big difference in impact: some companies fall into a fatal slump, while others quietly resolve the issue without causing a stir or quickly recover their corporate value. To understand this difference, it’s essential to examine how pre-existing brand assets and the qualitative nature of the scandal are evaluated by the market afterward. That said, much of the previous research has focused mainly on social media trends after a scandal or PR responses, and there are few studies that quantitatively show the structural factors behind the ultimate business damage caused by scandals. So, this study aims to comprehensively uncover the determinants of corporate value damage using financial and market data.