The Great East Japan Earthquake and Stock Prices

Jacques Jaussaud (1) , Sophie Nivoix (2, 3, 4, 5) , Serge Rey (6)

1 CREG - Centre de recherche et d'études en gestion
2 Axe 2 (2011-2016) : « Marchés, Cultures de consommation, Autonomie et Migrations » (MSHS Poitiers)
3 CRIEF - Centre de Recherche sur l'Intégration Economique et Financière
4 CEREGE - CEntre de REcherche en GEstion - EA 1722
5 CPER INSECT - CPER "INnovation Sociale, Economique et Culturelle dans des Territoires en mutation" (MSHS Poitiers)
6 CATT - Centre d'Analyse Théorique et de Traitement des données économiques

The Great East Japan Earthquake of March 11, 2011, which led to a massive tsunami and the nuclear accident at Fukushima, moved Japanese authorities to close most of the country's nuclear reactors for inspection (only 2 of 54 total currently are working), as well as to reassess its national energy policy. This article investigates the volatility of stock prices before and after the disaster. The evolution of stock prices of electric utility companies differs greatly, compared with those of firms in other industries.

Keywords: electric utility companies; earthquake; volatility; risk; Japan; stock market

Domains: Humanities and Social Sciences; Economics and Finance

Jacques Jaussaud, Sophie Nivoix, Serge Rey. The Great East Japan Earthquake and Stock Prices. Economics Bulletin, 2015, 35 (2), pp.1237-1261. ⟨hal-01885285⟩