Media negative coverage, punishment bulletins and market reaction: An empirical research on Chinese listed companies

Yuanyuan Ling and Qianhua Lei

Abstract

This paper studies the market reaction of the punishment bulletins and finds that the market reaction of the punishment bulletins is positive significantly. We also examine the impact of the media coverage on the market reaction of punishment bulletins and find that the more negative media coverage before punishment announcement of CSRC, the greater the positive market reaction of punishment bulletins.