earticle

영어

Online game industry is a newly emerging entertainment software industry as a successive and fast growing one, but while it reveals many characteristics distinctive from traditional ones such as movies, to the best of our knowledge, studies capturing them are still very sparse. One of key business challenge this industry face is securing investment for development since it requires relatively huge investment during the production and initial marketing stage. We analyze relationship between events that would be announced in the development process such as game rating information, public announcements about public tests, and stock market price in the online game industry and identify what kinds of process have impacts on the market. We examine the information of 11 online game companies from 2002 to 2009 that are listed in Korean stock markets. In this analysis we adopt event study methodology, widely used in finance and MIS literature. Our result shows strong positive correlation between the game rating events and stock price reaction. Finally we suggest implications for policy makers and firm managers to improve the value of the online game industries.