An Analysis of Scenarios and Sensitivity Following Environmental Damage: the Vale Do Rio Doce and Petrobrás Case

César Ricardo Maia Vasconcelos () and Walid Abbas El-Aouar ()
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César Ricardo Maia Vasconcelos: Potiguar University, Brazil
Walid Abbas El-Aouar: Potiguar University, Brazil

European Journal of Studies in Management and Business, 2022, vol. 21, 35-52

Abstract: The human activity that generates profits also brings impacts, whose losses can trigger several other problems. Upon considering the last ecological disasters that took place in Brazil, this study aims at identifying the understanding of what happens with the profit of companies that disclose events that involve environmental damages by using the Petróleo Brasileiro Petrobrás S.A. and Vale S. A. share prices as a study compared with Ibovespa, the Brazilian stock index. The research is classified as a quantitative, descriptive approach carried out through a Survey. Data collection was performed via stock opening and closing prices, maximum and minimum quotes, and the number of days until the stocks regained their value, which happened immediately before disclosure. The results showed investors, managers, and researchers that stock profit averages from companies that disclose their environmental damages have no meaningful differences concerning the non-diversified, systemic Ibovespa index, but recovering such profits takes longer.

Keywords: Asset Pricing; Sensitivity and Scenario Analysis; Environmental Damage; Competitive Intelligence (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:bco:mbrqaa::v:21:y:2022:p:35-52

DOI: 10.32038/mbrq.2022.21.03

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