The effect of Chernobyl on electric-utility stock prices

U.S. public electric-utility stock price reactions to the Chernobyl nuclear-power accident are investigated. Results indicate that utility shareholders earned, on average, significant negative abnormal returns during the 20-day period immediately following the accident. Firms using nuclear power experienced greater losses than did nonnuclear firms. These findings are consistent with those of previous studies on Three Mile Island. However, our results indicate no significant changes in systematic risk, total risk, or market risk as a result of the Chernobyl accident.