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IMPACT OF CORPORATE MISCONDUCT ON INDUSTRY PEERS A CASE STUDY OF PAKISTAN

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26 Pages : 348-365

http://dx.doi.org/10.31703/ger.2023(VIII-II).26      10.31703/ger.2023(VIII-II).26      Published : Jun 2023

Impact of Corporate Misconduct on Industry Peers: A Case Study of Pakistan

Abstract

    According to a new study on stigma spillover, the crisis spillover effect spreads from one firm to the next within an industry. However, the impact and contributing factors to the crisis spillover remain unknown. We enhance this research by investigating two related questions: What influence does an accused firm's wrongdoing have on the performance of industry peers in the same industry? What influence do product similarity and distance have on this spillover effect? Using panel data from 240 companies in Pakistan, our linear model results reveal that product similarity negatively affects the cumulative abnormal returns on the industry peers while there is a positive effect of distance on the performance of industry peers, as measured by the duration of crisis spillover. Our findings make significant contributions to both the literature and practice.

    Spillover, Industry Peers, Accused Firms

    (1) Hafsa Awan
    P.hD. Scholar, Department of Management Sciences, COMSATS University Islamabad, Pakistan.
    (2) Abubakr Saeed
    Associate Professor, Department of Management Sciences, COMSATS University Islamabad, Pakistan.
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APA

CHICAGO

    CHICAGO : Awan, Hafsa, and Abubakr Saeed. 2023. "Impact of Corporate Misconduct on Industry Peers: A Case Study of Pakistan." Global Economics Review, VIII (II): 348-365 doi: 10.31703/ger.2023(VIII-II).26

HARVARD

    HARVARD : AWAN, H. & SAEED, A. 2023. Impact of Corporate Misconduct on Industry Peers: A Case Study of Pakistan. Global Economics Review, VIII, 348-365.

MHRA

    MHRA : Awan, Hafsa, and Abubakr Saeed. 2023. "Impact of Corporate Misconduct on Industry Peers: A Case Study of Pakistan." Global Economics Review, VIII: 348-365

MLA

    MLA : Awan, Hafsa, and Abubakr Saeed. "Impact of Corporate Misconduct on Industry Peers: A Case Study of Pakistan." Global Economics Review, VIII.II (2023): 348-365 Print.

OXFORD

    OXFORD : Awan, Hafsa and Saeed, Abubakr (2023), "Impact of Corporate Misconduct on Industry Peers: A Case Study of Pakistan", Global Economics Review, VIII (II), 348-365

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