Why didn't BP's stock crash after its huge oil spill?
Penalties for industrial accidents: The impact of the Deepwater Horizon accident on BP’s reputation and stock market returns
Not medical advice. For informational purposes only. Always consult a healthcare professional. Terms
After BP's oil spill, people hated the company and its reputation sank, but investors didn't punish it with lower stock prices for long.
No biological mechanisms were identified in this study. This may be an epidemiological, observational, or survey-based study that reports associations rather than proposing causal biological pathways.
Systematic Reviews & Meta-Analyses
Max 100Randomized Controlled Trials
Max 90Cohort Studies
Max 72Case-Control Studies
Max 58Cross-Sectional Studies
Max 44Case Reports & Case Series
Max 30Expert Opinion & Narrative Reviews
Max 550 / 72
Evidence Score
Groups of people are followed over time to see who develops an outcome. Strong for identifying risk factors and associations, but cannot prove causation as firmly as RCTs.
Not medical advice. For informational purposes only. Always consult a healthcare professional. Terms
After BP's oil spill, people hated the company and its reputation sank, but investors didn't punish it with lower stock prices for long.
No biological mechanisms were identified in this study. This may be an epidemiological, observational, or survey-based study that reports associations rather than proposing causal biological pathways.
Systematic Reviews & Meta-Analyses
Max 100Randomized Controlled Trials
Max 90Cohort Studies
Max 72Case-Control Studies
Max 58Cross-Sectional Studies
Max 44Case Reports & Case Series
Max 30Expert Opinion & Narrative Reviews
Max 550 / 72
Evidence Score
Groups of people are followed over time to see who develops an outcome. Strong for identifying risk factors and associations, but cannot prove causation as firmly as RCTs.
Publication
Authors
McGuire W, Holtmaat EA, Prakash A
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Claims (6)
After the Deepwater Horizon oil spill, BP's brand reputation dropped by 50 points compared to a similar company that did not experience such an event, and it did not recover to its original level over seven years.
After the Deepwater Horizon oil spill, BP's stock performance over seven years was not meaningfully different from similar companies that did not experience such an environmental disaster.
After the Deepwater Horizon oil spill, other oil and gas companies did not experience a measurable decline in public reputation compared to similar companies that were not affected by the spill.
After the Deepwater Horizon oil spill, the stock prices of other oil and gas companies did not move significantly more than what would be expected based on similar companies not affected by the spill, indicating the event did not trigger broader market-wide losses in the industry.
After the Deepwater Horizon oil spill, BP's stock price returned to its pre-spill level within seven years, showing that financial markets did not reduce the company's value based on long-term environmental damage.