Recent study finds that environmental disasters and product recalls have the biggest long-term effect on shares

Survey finds that operational crises hit shareholder value the hardest.

According to the results of a recent study carried out by law firm Freshfields, the kind of 'operational' crises which impair a company's ability to function, such as significant product recalls or environmental disasters, typically have the greatest long-term effect on shares. In contrast, 'behavioural' crises triggered by companies acting illegally or questionably or by rogue employee activity, spook investors the most and can cause shares to crash by 50% or more on the day they become public ... READ MORE

Released by ICSA Governance & Compliance - 4 December 2012