Stock Market Reactions to Corporate Social Irresponsibility Actions Evidence from the US Fast Food Chains Industry

Fast food has become an important source of peoples daily food. However, corporate social irresponsible CSIR events in the fast food industry in recent years have aroused concerns among stakeholders. Existing literature generally ignores the investors response to CSIR events in the fast food industry and the resulting impact on enterprises and the industry. Based on the event research method, this paper studied the investors response to food borne infections caused by American fast food companies and analyzed the impact on the entire industry. Research has shown that the CSIR events have had a significant adverse effect on the target company's stock market earnings. At the industry level, although the study found significant impacts in all three cases, the directions of the impacts are different. The directions of the impacts depend on the nature of the CSIR event, investors assessment of the harm caused by the events, and the degree of trust in the industry. This research expands the corporate social responsibility literature in the food industry. At the same time, it also provides practical significance for the fast food industry to respond to corporate irresponsible events. Prince Owusu Sarkodie | Tian Gang | Michael Novor Addo | Samuel Atingabili | Derrick Ashietey Yebuah Wilson "Stock Market Reactions to Corporate Social Irresponsibility Actions: Evidence from the US Fast Food Chains Industry" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-2 , February 2021, URL: https://www.ijtsrd.com/papers/ijtsrd38418.pdf Paper Url: https://www.ijtsrd.com/management/other/38418/stock-market-reactions-to-corporate-social-irresponsibility-actions-evidence-from-the-us-fast-food-chains-industry/prince-owusu-sarkodie