Shock Events and Corporate Announcements

The purpose of this paper is to verify if, in case of a shock event, there are types of corporate announcement that may influence stock price behaviour better than others. The authors also try to determine if the communication strategy may be affected by the type of shock event. Using the event study analysis, the authors estimate the Cumulative Abnormal Returns associated to the stocks of the selected firms hit by a shock event, in order to visualise the effectiveness of different types of corporate announcements after the event. The research confirms the negative effect of shock events on corporate stocks’ value. Moreover, the study envisages that financial market rewards companies that assume consistent and reassuring announcements during the event window. The authors also find that the effectiveness of corporate announcements is related to the shock’s typology.