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The Effect of the Japan 2011 Disaster on Nuclear and Alternative Energy Stocks Worldwide: An Event Study

Abstract

This event study investigates the impact of the Japanese nuclear disaster in Fukushima-Daiichi on the daily stock prices of French, German, Japanese, and U.S. nuclear utility and alternative energy firms. Hypotheses regarding the (cumulative) abnormal returns based on a three-factor model are analyzed through joint tests by multivariate regression models and bootstrapping. Our results show significant abnormal returns for Japanese nuclear utility firms during the one-week event window and the subsequent four-week post-event window. Furthermore, while French and German nuclear utility and alternative energy stocks exhibit significant abnormal returns during the event window, we cannot confirm abnormal returns for U.S. stocks.

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Correspondence to Robert Ferstl.

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Ferstl, R., Utz, S. & Wimmer, M. The Effect of the Japan 2011 Disaster on Nuclear and Alternative Energy Stocks Worldwide: An Event Study. Bus Res 5, 25–41 (2012). https://doi.org/10.1007/BF03342730

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  • DOI: https://doi.org/10.1007/BF03342730

JEL-classification

  • G14
  • G12
  • G15

Keywords

  • event study
  • nuclear accidents
  • Fukushima-Daiichi
  • Fama-French model
  • bootstrap