Political discretion and risk: the Fukushima nuclear disaster, the distribution of global operations, and uranium company valuation

Aliyev, M; Devinney, T; Ferguson, A; Lam, P

Political discretion and risk: the Fukushima nuclear disaster, the distribution of global operations, and uranium company valuation

Aliyev, M Devinney, T Ferguson, A

Lam, P

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Publisher:: Oxford University Press
Publication Type:: Journal Article
Citation:: Industrial and Corporate Change, 2024, 33, (3)
Issue Date:: 2024

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Field	Value	Language
dc.contributor.author	Aliyev, M
dc.contributor.author	Devinney, T
dc.contributor.author	Ferguson, A https://orcid.org/0000-0003-0535-0643
dc.contributor.author	Lam, P
dc.date.accessioned	2024-08-14T05:55:35Z
dc.date.available	2024-08-14T05:55:35Z
dc.date.issued	2024
dc.identifier.citation	Industrial and Corporate Change, 2024, 33, (3)
dc.identifier.issn	0960-6491
dc.identifier.issn	1464-3650
dc.identifier.uri	http://hdl.handle.net/10453/180408
dc.description.abstract	This paper investigates the relationship between political constraint and investor perception of policy risk using an analysis of the reaction of Australian and Canadian uranium company stocks to the Fukushima nuclear disaster in 2011. Our dataset traces 933 projects of 322 uranium firms located across 36 countries and posits a U-shaped relationship between political constraint and investor perceptions of policy risk. Using an event study methodology as applied to the natural quasi-experiment arising from the event, we link heterogeneous changes in stock returns to the policy risk in the uranium project locations of the firms. The results corroborate the expected relationship and hold even after we control for home-country bias.
dc.language	English
dc.publisher	Oxford University Press
dc.relation.ispartof	Industrial and Corporate Change
dc.relation.isbasedon	10.1093/icc/dtad038
dc.rights	info:eu-repo/semantics/openAccess
dc.subject	1402 Applied Economics, 1503 Business and Management
dc.subject.classification	Business & Management
dc.subject.classification	3507 Strategy, management and organisational behaviour
dc.subject.classification	3801 Applied economics
dc.title	Political discretion and risk: the Fukushima nuclear disaster, the distribution of global operations, and uranium company valuation
dc.type	Journal Article
utslib.citation.volume	33
utslib.for	1402 Applied Economics
utslib.for	1503 Business and Management
pubs.organisational-group	University of Technology Sydney
pubs.organisational-group	University of Technology Sydney/Faculty of Business
pubs.organisational-group	University of Technology Sydney/Faculty of Business/Accounting Discipline
utslib.copyright.status	open_access	*
pubs.consider-herdc	false
dc.rights.license	This work is licensed under a Creative Commons Attribution 4.0 International License (CC BY 4.0). To view a copy of this license, visit https://creativecommons.org/licenses/by/4.0/
dc.date.updated	2024-08-14T05:55:33Z
pubs.issue	3
pubs.publication-status	Published online
pubs.volume	33
utslib.citation.issue	3

Abstract:

This paper investigates the relationship between political constraint and investor perception of policy risk using an analysis of the reaction of Australian and Canadian uranium company stocks to the Fukushima nuclear disaster in 2011. Our dataset traces 933 projects of 322 uranium firms located across 36 countries and posits a U-shaped relationship between political constraint and investor perceptions of policy risk. Using an event study methodology as applied to the natural quasi-experiment arising from the event, we link heterogeneous changes in stock returns to the policy risk in the uranium project locations of the firms. The results corroborate the expected relationship and hold even after we control for home-country bias.

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http://hdl.handle.net/10453/180408