Using an event study methodology to analyze the impact of corporate misconduct on stock price performance, this study reveals the following five findings: (1) misconduct negatively affects stock prices, (2) the negative impact of accidental misconduct is limited, while intentional misconduct has a significant effect, (3) falsified production sites and manipulated testing data have the most severe negative impact, (4) misconduct at subsidiaries creates negative spillover effects on the parent company, and (5) good corporate governance may mitigate the negative impact, but is likely to lead to adverse outcomes.