An Analysis of the Impact of Sudden Events on China's Automobile Industry Stock Price

Xiaoyue Wang

doi:10.20849/ajsss.v2i1.133

Abstract

The occurrence of special events such as food safety, information disclosure, policy implementation and political events will have a certain impact on the relevant areas of economic and financial. This paper uses the incident research method to take the political events of the Diaoyu Islands dispute as an example to study the influence of the listed companies in the Chinese automobile industry related to the Japanese brand. The conclusion is that the occurrence of special events in the listed companies of China's automobile industry to the relevant economic performance as a substitute effect, and the occurrence of special events on the Japanese brand of the car has a negative impact, but there is a positive impact on the Chinese local brands and European and American brands of cars.

Highlights

In recent years, China and neighboring countries, increasing friction, such as China and Vietnam, the Philippines and other countries in the South China Sea dispute, the Sino-Indian border Xinjiang region dispute, the Sino-Japanese Diaoyu Islands dispute, But in the economy along with national political disputes, with the deepening of the world economic integration, the interdependence and development of the economies of various countries, which makes us need to seriously consider the economic consequences of political conflict
The public appeared a strong boycott of Japanese goods, Japanese brand sales in China suddenly dropped, home appliances, aviation, tourism, the automotive industry have suffered heavy losses
A large part of the literature on the Diaoyu Islands dispute on the overall macroeconomic impact of China and Japan (Kui Renzhi, 2013) there are some literature focused on the Japanese car affected by the Diaoyu Islands incident (Gao Yan, 2013; Xu Mei, 2013), these documents are mainly from the Sino-Japanese Diaoyu Islands conflict on the Japanese brand car sales were statistically described, concluded that the impact of the Diaoyu Islands incident, the Japanese car's overall sales level compared to the previous month fell by 29.5%

Summary

Introduction

China and neighboring countries, increasing friction, such as China and Vietnam, the Philippines and other countries in the South China Sea dispute, the Sino-Indian border Xinjiang region dispute, the Sino-Japanese Diaoyu Islands dispute, But in the economy along with national political disputes, with the deepening of the world economic integration, the interdependence and development of the economies of various countries, which makes us need to seriously consider the economic consequences of political conflict. On the political conflict to the macroeconomic and the influence of various industries has become one of the hotspots in economic research. A large part of the literature on the Diaoyu Islands dispute on the overall macroeconomic impact of China and Japan (Kui Renzhi, 2013) there are some literature focused on the Japanese car affected by the Diaoyu Islands incident (Gao Yan, 2013; Xu Mei, 2013), these documents are mainly from the Sino-Japanese Diaoyu Islands conflict on the Japanese brand car sales were statistically described, concluded that the impact of the Diaoyu Islands incident, the Japanese car's overall sales level compared to the previous month fell by 29.5%. There are few empirical documents on the impact of political emergencies on macroeconomics, and the empirical research articles specific to the industry are scarce. Studying the impact of political conflict on the share price of the other sectors of the automotive industry helps to understand the specific economic impact of political conflicts on their own brand companies http://ajsss.julypress.com

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