Management of Multinationals in Crisis

Your objective is to identify the effects of the crisis. 

  • Consider the effects on the company, its industry, and the stakeholders.
  • Did the crisis have an effect on the company's stock price or revenues?
  • Did the crisis harm the company's reputation?

Find Numbers that Measure the Financial Impact

Stock Prices - Chart the change in the company's stock price over time with Bloomberg or Capital IQ. Bloomberg links high/low price points to key news events. Capital IQ offers an Annotated Stock Chart. Both are available in the Subotnick Financial Services Center.

S&P Capital IQ NetAdvantage is networked through the Library's database page. It also offers an Annotated Stock chart.

Revenue/Net Income - Look for changes in revenue and net income over time. Historical financial data can be customized and downloaded in S&P Capital IQ NetAdvantage.

Business Segment Data -Refinitiv Eikon breaks out revenues for major lines of business and for geographic areas.

Short and Long-Term Response

Analysis of the impact of the crisis depends on your synthesis of many of the sources you have used in your survey of the company and the business environment. In addition, you should identify the actions of other stakeholders.  Ask who were the major interest groups that responded to the crisis. Also determine if there was any government response. Was legislation passed or new regulations put into effect.

News databases like Factiva are useful for assessing the short-term inpact.  Use Business Source and ABI/INFORM for longer-term analysis.

Government Response

Governments are often involved in investigating and responding to corporate crises. Congress might hold hearings. Government agencies issue reports or regulations. News reports will alert you to government action. To get transcripts of hearings or official documents, use one of the websites listed here:

Company Reporting on the Crisis

Companies will respond to the crisis on the Investor Relations page of their website. Find press releases, reports to the SEC; conference calls with investors and analysts; and often postings to social media.

Use the "Corporate Timeline"  in the database S&P Capital IQ NetAdvantage to identify reporting by the company (with links to SEC filings) over any desired time period.

Company Reporting - Use SEC Filings

The 10-K report. There are several specific items in the company's 10-K report to the SEC that are useful for analyzing the business or legal impact of corporate events.

The Management Discussion and Analysis (MD&A) - Item 7

In the MD&A companies must disclose information about trends, events or uncertainties that would have a material impact on the company's financial condition. [Note: The MD&A is updated every quarter in the company's 10-Q filing.]

Two sections on Risk - Items 1A and 7A

The company must address risk factors for the company and its industry and economic environment as part of their business description (Item 1A). Financial risk is reported in Item 7A, part of the MD&A analysis.

Legal Proceedings - Item 3

Significant legal issues must be reported in Item 3.

The 8-K Report. The 8-K is used to announce corporate changes to the shareholders. Unscheduled material events must be disclosed within four days of the event.


Company Reporting - Use Company Press Releases

Company press releases provide the official announcement and response of the company to the crisis. You wil find press releases on the company's website.

Many companies also distribute press releases to the media through wire services like Business Wire and PR Newswire. If the company doesn't keep an archive of press releases on its website, you can search these wire services in Factiva.

Company Reporting - Use Company Conference Calls

Companies schedule conference calls to discuss their quarterly earnings and to report on important transactions like a merger or acquisition or change of management.  The company CEO and CFO make presentations to open the call. Large institutional investors and financial analysts listen in to the webcast and interact with management in the Q&A session that follows. 

Transcripts, conference PPTs, and webcasts are posted on the company's Investor Relations page. Transcripts of many earnings calls can also be found at the website Seeking Alpha.