4 in the short and medium term respectively

Polluter. Financial market also quite clearly endorse it groups petroleum and chemicals that have experienced industrial accidents, particularly those harmful to the environment. This is the conclusion of a study () Gunter Capelle-Blancard of the University of Paris-I Panthéon-Sorbonne and Marie-Aude Laguna de Paris - IX Dauphine University.

On the 64 accidents analyzed over the period 1990-2005, a quarter has been a significant decrease courses of the companies that were originally. In the two days following these mishaps, combined their course reached 1.3, down down their market capitalization of $ 306 million. A death or a casualty of more "translates" additional loss of $ 164 million. When toxic elements are on this occasion released in nature, the fall in market capitalization can become very important, 190 million to $ 1.82 billion. Longer term, six months after the accident, the invoice can increase with a further fall of 12 in the case of pollution.

Increasing sensitivity

Investors can take some time to precisely estimate the financial consequences of such an event, not because its origin may be uncertain (negligence, attack) as in the case of the explosion in September 2001 to the Total Group AZF factory. It would have cost him $ 3 billion, or 3 of its market capitalization fall, in the first three days which followed. A Bill which may seem heavy but still well below the 27 fall in the Union Carbide title within one month after the explosion of Bhopal, India plant in 1984.

10 Of the most deadly accidents in human lives are translated by a median decrease of 1.6 in three days and 3.3 over six months. For harmful accidents for the environment, the decline is 1 and 6.4 in the short and medium term, respectively. Pollution is an aggravating factor in view of its many induced costs (cleaning, bad image of the company). The increasing sensitivity of investors and the public to the problems of the environment could also play a role. The negative reaction of the market to an accident depends on the history of the company in the matter. If it has already had often such a mishap, the market the countenance hardest, saw a repetition of past mistakes. Investors will reassess upward their estimate of the risks of this business and therefore the interest of their investments, while conversely they can give it the benefit of the doubt (bad luck, malicious action) when it is the first time that this occurs.

Central question

Societies undergoing a chemical accident in Europe or in the Japan record on average a higher decrease in their stock prices when it occurs in the United States, 1.25 and 1.8 respectively. The reason "It is possible that across the Atlantic, to cause including stricter regulations and a greater transparency, investors have more confidence in the degree of risk of a company and therefore react less after an event such as a chemical accident", say researchers. They conclude their work by leaving open a central issue, namely: the fall of the prices found is of sufficient magnitude to strongly encourage the management of these companies to review its environmental practices