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2018 | OriginalPaper | Chapter

17. Explanation of the Relation Between Organizational Legitimacy and Firms’ Price

Authors : Raúl Gómez-Martínez, Loarre Andreu, Francisco Díez-Martín

Published in: Organizational Legitimacy

Publisher: Springer International Publishing

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Abstract

This research’s objective is to define what is the effect of organizational legitimacy on the price of a company’s stock. To meet the objective, researchers studied both stock index and legitimacy of IBEX 35 in 19 mass media, during a 15-month period of time. Natural language processing (NLP) was used to process data, which was modeled using Bayesian networks. Results show how the probability of increase of firm’s stock prices depends on the legitimacy variation obtained by the firm the day before. Also, they highlight the importance of legitimacy management through mass media, principally social media and specialized media.

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Title: Explanation of the Relation Between Organizational Legitimacy and Firms’ Price
Authors: Raúl Gómez-Martínez
Loarre Andreu
Francisco Díez-Martín
Publisher: Springer International Publishing
Book: Organizational Legitimacy
Print ISBN: 978-3-319-75989-0

Electronic ISBN: 978-3-319-75990-6

Copyright Year: 2018
DOI: https://doi.org/10.1007/978-3-319-75990-6_17