The Impact of the Great Tohoku Earthquake and Tsunami on the Japanese Electricity Industry
This paper quantifies and analyzes the economic impact of the Great Tohoku Earthquake and tsunami on the Japanese electricity industry using alternative event study methodology. The data set includes daily stock prices of 11 publicly traded electricity companies. This paper investigates the changes...
Main Author: | |
---|---|
Format: | Others |
Published: |
Scholarship @ Claremont
2013
|
Subjects: | |
Online Access: | http://scholarship.claremont.edu/scripps_theses/293 http://scholarship.claremont.edu/cgi/viewcontent.cgi?article=1177&context=scripps_theses |
id |
ndltd-CLAREMONT-oai-http---scholarship.claremont.edu-do-oai--scripps_theses-1177 |
---|---|
record_format |
oai_dc |
spelling |
ndltd-CLAREMONT-oai-http---scholarship.claremont.edu-do-oai--scripps_theses-11772013-05-31T03:03:28Z The Impact of the Great Tohoku Earthquake and Tsunami on the Japanese Electricity Industry Suzuki, Misato This paper quantifies and analyzes the economic impact of the Great Tohoku Earthquake and tsunami on the Japanese electricity industry using alternative event study methodology. The data set includes daily stock prices of 11 publicly traded electricity companies. This paper investigates the changes in systematic risk, abnormal returns (ARs), and cumulative abnormal returns (CARs) before and after the natural disaster. In addition, I compare the movement of the stock price in the electricity industry with other indices in Japan to investigate the aggregate level impact on the Japanese economy. By examining the economic impact of the earthquake, this paper provides a visual and a numerical representation of the change in investors’ views on the electricity industry. The results showed no statistically significant changes in ARs in the immediate aftermath of the disaster. On the other hand, statistically significant changes in CARs were found for all 11 electricity companies over an extended period following the disaster. Furthermore, there was a statistically significant increase in systematic risk, especially in the nuclear-committed firms. Although the electricity industry was negatively affected, daily stock prices and CARs show that other industries were not as severely affected. These results provide insight to the global economic and the political implication of the disaster. 2013-04-01T07:00:00Z text application/pdf http://scholarship.claremont.edu/scripps_theses/293 http://scholarship.claremont.edu/cgi/viewcontent.cgi?article=1177&context=scripps_theses © 2012 Misato Suzuki Scripps Senior Theses Scholarship @ Claremont Great Tohoku Earthquake tsunami natural disaster electricity industry Japan Economics |
collection |
NDLTD |
format |
Others
|
sources |
NDLTD |
topic |
Great Tohoku Earthquake tsunami natural disaster electricity industry Japan Economics |
spellingShingle |
Great Tohoku Earthquake tsunami natural disaster electricity industry Japan Economics Suzuki, Misato The Impact of the Great Tohoku Earthquake and Tsunami on the Japanese Electricity Industry |
description |
This paper quantifies and analyzes the economic impact of the Great Tohoku Earthquake and tsunami on the Japanese electricity industry using alternative event study methodology. The data set includes daily stock prices of 11 publicly traded electricity companies. This paper investigates the changes in systematic risk, abnormal returns (ARs), and cumulative abnormal returns (CARs) before and after the natural disaster. In addition, I compare the movement of the stock price in the electricity industry with other indices in Japan to investigate the aggregate level impact on the Japanese economy. By examining the economic impact of the earthquake, this paper provides a visual and a numerical representation of the change in investors’ views on the electricity industry. The results showed no statistically significant changes in ARs in the immediate aftermath of the disaster. On the other hand, statistically significant changes in CARs were found for all 11 electricity companies over an extended period following the disaster. Furthermore, there was a statistically significant increase in systematic risk, especially in the nuclear-committed firms. Although the electricity industry was negatively affected, daily stock prices and CARs show that other industries were not as severely affected. These results provide insight to the global economic and the political implication of the disaster. |
author |
Suzuki, Misato |
author_facet |
Suzuki, Misato |
author_sort |
Suzuki, Misato |
title |
The Impact of the Great Tohoku Earthquake and Tsunami on the Japanese Electricity Industry |
title_short |
The Impact of the Great Tohoku Earthquake and Tsunami on the Japanese Electricity Industry |
title_full |
The Impact of the Great Tohoku Earthquake and Tsunami on the Japanese Electricity Industry |
title_fullStr |
The Impact of the Great Tohoku Earthquake and Tsunami on the Japanese Electricity Industry |
title_full_unstemmed |
The Impact of the Great Tohoku Earthquake and Tsunami on the Japanese Electricity Industry |
title_sort |
impact of the great tohoku earthquake and tsunami on the japanese electricity industry |
publisher |
Scholarship @ Claremont |
publishDate |
2013 |
url |
http://scholarship.claremont.edu/scripps_theses/293 http://scholarship.claremont.edu/cgi/viewcontent.cgi?article=1177&context=scripps_theses |
work_keys_str_mv |
AT suzukimisato theimpactofthegreattohokuearthquakeandtsunamionthejapaneseelectricityindustry AT suzukimisato impactofthegreattohokuearthquakeandtsunamionthejapaneseelectricityindustry |
_version_ |
1716586328731156480 |