Toshiba’s market valuation in the midst of a long term turmoil


  • Serge Rey University of Pau, Cedex
  • Sophie Nivoix University of Poitiers, Poitiers



Toshiba, Japan, abnormal return, risk, auditing, scandal


Since 2008 Toshiba is experiencing a major fraud and financial scandal, which has impaired its stock price, governance and reputation. As this conglomerate is one of the largest and more ancient Japanese industrial group, it is highly interesting to analyze the impact of this situation on the main financial indicators of the company in a long run perspective. Our study underlines that while the risk level of the firm was increasing the returns and stock price were dropping. Such an evolution really endangered the group, as showed by the stock market ratios. In addition, the calculation of abnormal returns confirms that the news considered a priori as good (or bad) generated cumulative increases (or decreases) in the returns of the Toshiba stock.


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