Stock market response to potash mine disasters

Oskar Kowalewski () and Piotr Śpiewanowski

Journal of Commodity Markets, 2020, vol. 20, issue C

Abstract: We examine the stock market reaction to disasters in potash mines. We use a sample of 55 mining accidents – natural and man-made - worldwide over the period 1986–2019. On average, the affected mining firms experience a cumulative drop in their market value of 1.15% in the first 2 ​day ​day of a disaster. We show also that the accidents impact stocks of the current and future (greenfield) competitors of the affected firms. The direction and size of the effect is determined by the relative strength of the negative risk effect and positive price and supply effects.

Keywords: Potash mine; Disasters; Event study; Working accident; Catastrophe (search for similar items in EconPapers)
JEL-codes: G14 Q27 Q51 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S2405851320300015
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Stock market response to potash mine disasters (2020)
Working Paper: Stock market response to potash mine disasters (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jocoma:v:20:y:2020:i:c:s2405851320300015

DOI: 10.1016/j.jcomm.2020.100124

Access Statistics for this article

Journal of Commodity Markets is currently edited by Marcel Prokopczuk, Betty Simkins and Sjur Westgaard

More articles in Journal of Commodity Markets from Elsevier
Bibliographic data for series maintained by Catherine Liu ().