This study investigate the effects of negative labor relations events on stock prices for Taiwan's listed companies with the sample period of 2002 to 2014. Firstly, we analyze factors that influence the negative labor relations events employ with the logistic model. We conclude that chairman internalize, compensation of directors and supervisors to net income before tax and firms size have significant positive influence on the probability negative labor relations event, but significant negative the foreign ownership.
After the announcement effect of negative labor relations events, the negative labor relations events have a negative stock price reaction. The impact of the negative labor relations events announcement effect, chairman internalize have a greater negative cumulative abnormal returns, and higher foreign ownership and profitability will have a greater negative cumulative abnormal returns.
