Stock price reaction to power outages following extreme weather events: Evidence from Texas power outage

Sherry Hu, Kose John and Balbinder Singh Gill

Papers from arXiv.org

Abstract: In this study, we evaluate the effects of natural disasters on the stock (market) values of firms located in the affected counties. We are able to measure the change in stock prices of the firms affected by the 2021 Texas winter storm. To measure the abnormal return due to the storm, we use four different benchmark models: (1) the market-adjusted model, (2) the market model, (3) the Fama-French three-factor model, and (4) the Fama French plus momentum model. These statistical models in finance characterize the normal risk-return trade-off.

Date: 2022-10
New Economics Papers: this item is included in nep-ene, nep-env, nep-fmk and nep-rmg
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Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:2210.16905

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