Sheng-Syan ChenKENG YU HOPo-Hsin HoSHENG-SYAN CHEN2019-07-222019-07-222018https://scholars.lib.ntu.edu.tw/handle/123456789/414405This study investigates the wealth effects on announcements of operational risk events for intra-industry competitors in the U.S. during the period 1980 to 2012. We find that competitors face a significantly positive wealth effect, but the event firms experience a negative wealth effect. The results suggest that the competitive effect dominates the contagion effect. We further examine various determinants that affect the strength of the competitive effect from three perspectives. For the event characteristics, we find that the competitive effect for competitors is stronger when the event's loss amount is higher and the event firm's occurrence frequency is higher. For the industry characteristics, we show that competitors experiencing stronger competitive effects tend to be in industries with higher concentration. For the competitors' firm characteristics, we find that competitors with higher research and development (R&D) expenditure, lower firm complexity, better corporate governance mechanisms, and lower chief executive officer (CEO) equity incentive are more likely to have stronger competitive effects.enOperational riskCompetitive effectWealth Effect作業風險競爭效果財富效果journal article10.6529/RSFM.201812_30(4).0001