stock market and deterrence effect a mid-run analysis of major environmental and non-environmental accidents论文.pdfVIP

Journal of Environmental Economics and Management 71 (2015) 1 –18 Contents lists available at ScienceDirect Journal of Environmental Economics and Management journal homepage: /locate/jeem Stock market and deterrence effect: A mid-run analysis of major environmental and non-environmental accidents $ Cécile Carpentier, Jean-Marc Suret Laval University and CIRANO Fellows, Québec, QC, Canada a r t i c l e i n f o a b s t r a c t Article history: We analyze the stock market reaction to 161 major environmental and non- Received 1 February 2013 environmental accidents, reported on the front page of the New York Times for half a Available online 30 January 2015 century. To determine if the market induces a real deterrence effect, we extend the event JEL classification: windows up to one year. On average, the market reacts negatively and enduringly to the G14 announcement of an accident. However, this average effect is largely driven by the airline Q51 industry and by government interventions. The estimated average compounded abnormal Q53 return following environmental accidents does not differ from zero after one year. This does not exclude, in severe events affecting large firms, huge losses in equity value, but Keywords: the significant negative cumulative ab