Research challenges 'stigma effect' for industries with law-breaking companies
When financial misconduct is discovered, the company caught cooking the books suffers a fall in market value, but so do its industry peers, because the accusation triggers investors' perceptions that other companies in the industry may have engaged in similar misconduct (stigma effect). Interestingly, however, a few close competitors of the wrongdoer could actually benefit from the scandal by acquiring its disgruntled customers, which could boost their market value (competition effect).
from Phys.org - latest science and technology news stories https://ift.tt/3u2hUUX
from Phys.org - latest science and technology news stories https://ift.tt/3u2hUUX
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