Stock market responses to chemical accidents in Japan: An event study

被引:10
作者
Makino, Ryoji [1 ]
机构
[1] Natl Inst Adv Ind Sci & Technol, Res Inst Sci Safety & Sustainabil, Onogawa 16-1, Tsukuba, Ibaraki 3058569, Japan
关键词
Event study; Stock price; Chemical accident; Risk indicator; Information disclosure; Incentive; INFORMATION; MANAGEMENT; RELEASE; TOOL;
D O I
10.1016/j.jlp.2016.10.019
中图分类号
TQ [化学工业];
学科分类号
0817 ;
摘要
Despite recent major chemical process accidents in Japan, the top management teams of firms still avoid taking costly risk reduction measures because of their low perceived impact on firm performance. The disclosure of information on accident risks might motivate managers to enhance workplace safety because of the subsequent evaluation of firms by investors in stock markets. If the disclosed risk information is newly available for investors, firms with a high risk of accidents would receive a poor evaluation by stock markets and thus managers would take risk reduction measures to prevent stock prices from declining. In this study, we conduct an event study analysis to examine whether accident risk information is already reflected in stock prices, using data on the Japanese chemical industry. The results of our event study show that the estimated cumulative average abnormal returns of firms' stocks are significantly negative after severe accidents actually occurred. This finding implies that risk information is not already reflected in the stock prices of Japanese chemical firms and that the disclosure of accident risk information has the potential to motivate the top management teams of firms to reduce their firms' accident risk. (C) 2016 Elsevier Ltd. All rights reserved.
引用
收藏
页码:453 / 458
页数:6
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