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Abstract

This paper examines the stock market reaction to the British Petroleum oil spill on April 20, 2010. This event study looks at different sectors that may be affected by the oil spill. It finds that different industries do not have significant abnormal returns, with two exceptions. First, utilities companies have a very small positive abnormal return for a short period of time after the incident. Second, when only looking at BP's direct competitors, there is a statistically significant negative abnormal return, implying that BP's competitors are punished for BP's mishap.

 

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