There’s a Guy in the Center Aisle with a Gun!” -Workplace Homicides and Shareholder Wealth
This paper examines equity market responses to workplace homicides. Although previous research has examined the demographic, behavioral, and loss control aspects of workplace violence, as well as stock price reactions to large, non-operating losses, this is the first study to jointly consider these two important research avenues. Although insignificant on the event day for the sample as a whole, significant negative abnormal returns were detected over the 30 days following workplace killings. A cross-sectional regression of the company-specific cumulative abnormal return levels registered over the event period suggests that the employment status of the killer was the key explanatory variable. Accordingly, the initial sample was divided between events in which the perpetrator was either a current or former employee of the firm versus events in which the killer was unrelated to the targeted company. Stark differences in market reactions to the two samples were found. In particular, employment- related killings produced a negative announcement effect and significant negative returns that persisted for some time after the killings. Overall, the results demonstrate the importance of loss control and market perception of culpability (e.g., forthcoming lawsuits and settlements) when a current or former employee commits a workplace homicide.
Volume (Year): 29 (2006)
Issue (Month): 2 ()
|Contact details of provider:|| |
When requesting a correction, please mention this item's handle: RePEc:wri:journl:v:29:y:2006:i:2:p:132-157. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (James Barrese)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.