Operational Risks and Firm Market Performance: Evidence from China*
研究利用中国543家上市公司762起操作风险事件，发现操作风险整体上显著负面冲击股票市场表现，且不同类型风险（人为vs自然、中断vs非中断、外部违规vs内部事件）的市场反应存在差异，市场份额和产品替代性等竞争因素对风险反应有不同调节作用。
ABSTRACT This study investigates how different operational risks impact firm stock market performance. By using a sample of 762 operational risk events published by 543 listed Chinese firms over the period of 2010–2017, we document an overall significantly negative market reaction to operational risks. Specifically, we find that the stock market reaction differs across operational risk types. Man‐made operational risk and disruption operational risk events are associated with greater negative market reaction than nature‐caused and nondisruption operational risk events, respectively. We further find that regulatory violations (external risks) have a smaller negative market reaction than operational incidents (internal risks). Finally, we show that different determinants of competitive forces, namely, a firm's market share and product substitutability, have contrasting effects on the market reaction of all operational risks. These findings can aid various stakeholders to understand the impact of different operational risks and advance cost‐effective mechanisms aimed at mitigating operational risks in China, with potential application to other regions.