Sensitivity of market performance to social risk index: Evidence from global listed companies in logistics and transportation industry

Abstract

Recently, the ramp speed of business-disrupting social issues is accelerating, and companies are increasingly facing a newer form of risk: social risk. Hidden in the corporate blind spots, this risk prevails the most amorphous risk of the company’s social footprint as it is hardly noticed due to the insulating power of the corporate cultural bubble.1 In January 2021, the story of GameStop mania that invades the news describes two-week wild speculation that caused stock prices to soar by 1,500%. Curious analyses conclude that many GameStop investors were not driven by perceptions of risk or opportunity in the market. Instead, investors’ behaviour signals symptoms of social risk to lash out against dominant institutions when they no longer serve them or may actively work against their interests.

Keywords : Logistics , Transportation, Social Risk , Market Performance,