Browsing by Author "Schug, Per Espen"
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- The financial impact of the Fukushima reactor meltdown on the stock returns of german nuclear power providersPublication . Schug, Per Espen; Cerqueiro, Geraldo Manuel AlvesThe purpose of this thesis is to determine the financial impact of the Fukushima reactor meltdown on the stock returns of German nuclear power providers. It was argued that the Fukushima incident affected these companies beyond the event itself, as it sparked a change to the political climate towards nuclear power. The day Chancellor Merkel announced the decision to end all nuclear power production in Germany by 2022 was deemed the most significant event after Fukushima. An event study was used to measure the effects of both events on a German sample and an EU sample. The results showed that the Fukushima reactor meltdown had a significant negative effect on nuclear power providers of both samples. The negative effect was explained by investors reassessing the risk of dealing with nuclear power and their reaction to new government policies. The announcement made by Chancellor Merkel also had a significant negative effect on German nuclear power providers. The negative effect was explained by the market reacting to the companies’ loss of expected future cashflows and the uncertainty regarding how they will adjust their business strategy. The financial loss experienced by the shareholders of the three German nuclear power providers was EUR -6,94 billion.