Tarred and untarred by the same brush: Exploring interdependence in the volatility of stock returns

Journal article

When a firm suffers a major accident, its stock price is likely to become more volatile, but does this accident also increase the volatility of the stocks of rivals? Following a major accident, rivals sometimes unite through their trade association to implement an industry self-regulatory program. Do such collective efforts help to stabilize the stocks of firms in these threatened industries? This paper presents a longitudinal empirical study of the influence of a major accident by a single f...

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Authors: Barnett, M

• Publication date: 2007-01-01