Original Research ARTICLE
Impact of Emotional Harassment on Firm's Value
- 1Hanyang University, South Korea
- 2Kyonggi University, South Korea
The activities and consequences of workplace bullying and harassment have been widely explored in the literature but mainly studied within the scope of individuals or at the team level. Taking a holistic approach, we associate the concept of bullying with firm-level performance as well as stakeholders’ responses in the market. In this paper, we examine whether and how market investors react to the news of corporate harassment by top officials of publicly listed firms in Korea. Using a standard event study methodology and multiple regression analysis with matched sample, we find significantly negative stock price reactions to news of corporate bullying. We also find that the impact is more salient if emotional bullying is involved and discuss both the theoretical and practical implications of these findings.
Keywords: power trip, Emotional harassment, Conglomerate, Market reaction, Korean-listed firms, Event study, Event system theory, emotional contagion
Received: 12 Sep 2018;
Accepted: 07 Nov 2018.
Edited by:Weon Sang Yoo, Korea University, South Korea
Reviewed by:Seung-Wan Kang, Gachon University, South Korea
Khan-Pyo Lee, Sogang University, South Korea
Copyright: © 2018 Choi, Park and Choi. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) and the copyright owner(s) are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
* Correspondence: Prof. Seong-jin Choi, Hanyang University, Seoul, South Korea, firstname.lastname@example.org