Print Email Facebook Twitter Bankruptcy by catastrophes for major multi-nationals: Stock exchange sensitivity for three catastrophes Title Bankruptcy by catastrophes for major multi-nationals: Stock exchange sensitivity for three catastrophes Author Van Gulijk, C. Ale, B.J.M. Faculty Technology, Policy and Management Department Values and Technology Date 2012-06-25 Abstract This paper investigates the effect of major catastrophes have on stock exchange values for the major multi-nationals. The paper demonstrates that the Sharpe analysis is more sensitive in identifying effects than just following the daily stock values for assessing market response. It was found that major multi-nationals are capable of absorbing incredible amounts of financial damage following from catastrophes before stock markets react. This is partly due to the complexity of modern financial market risks that can be sold or transferred easily from the operative entity to another entity. The findings suggest that Hudson’s (2007) HSE culture ladder requires a step below the pathological to reflect the reaction of the stock exchange market on major catastrophes: the indifferent level. If the financial risks of catastrophes are covered, market traders rarely assign further consequences for the loss of life to the company through the lowering stock prices. Despite that, there may be a threshold value for financial loss that could bring major multi-nationals to bankruptcy due to market capital loss. Subject chemical and processing industryenterprise risk managementcatastrophes To reference this document use: http://resolver.tudelft.nl/uuid:4b10a419-4f8c-43b8-a422-c3156db5c400 Publisher Curran Associates ISBN 978-1-62276-436-5 Source PSAM 11: 11th International Probabilistic Safety Assessment and Management Conference & ESREL 2012: The Annual European Safety and Reliability Conference Scandic Marina Congress Center, Helsinki, Finland, 25-29 June 2012 Part of collection Institutional Repository Document type conference paper Rights (c) 2012 The Author(s)IAPSAM & ESRA Files PDF 289490.pdf 406.33 KB Close viewer /islandora/object/uuid:4b10a419-4f8c-43b8-a422-c3156db5c400/datastream/OBJ/view