ABSTRACT
In 2010 the British multinational oil and gas company BP was involved in an oil spill incident in the Gulf of Mexico following a fire on the Deepwater Horizon drilling platform BP lost no less than one third of its market value between the time of the start and the closing of the leak. This study analyzes whether BP’s stock market loss is due to reputational penalties for this environmental violation or whether it can be explained by expected clean-up costs and expected legal penalties.
Engelen, Peter-Jan, Did BP Pay a Reputational Penalty for the Deepwater Horizon Oil Spill? (December 31, 2018) in Faure, M, Schreuders, W and Visscher, LT (eds) (2018), Don’t take it seriously – Essays in law and economics in honour of Roger Van den Bergh, Intersentia.
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