Data Tool
Incident Event Study Tool
Measuring how markets price environmental incidents
A generalized event study workflow that measures abnormal share-price reactions to environmental incidents, with benchmark-aware recovery analysis.
Problem
Analysts assessing incident risk had no consistent way to measure how much an environmental event actually cost shareholders, or how long recovery took.
Method
A Python price-retrieval pipeline feeds a structured Excel workbook that computes abnormal returns against same-country, same-currency benchmarks across a verified incident dataset.
Output
A reusable workbook and research template that turns any new incident into a comparable, benchmark-adjusted case study within minutes.
Impact
Gives the research team an evidence base for pricing incident risk instead of relying on anecdote, and a repeatable standard for future special-situations work.
Why this exists
When an environmental incident hits a public company, the interesting question is not whether the stock falls — it is how much of the fall is attributable to the incident, and how long the market takes to forgive it. Answering that consistently across many incidents requires discipline about benchmarks, event windows, and recovery definitions.
Design decisions that matter
A few choices shape every result the tool produces:
- Close price, not adjusted close, as the primary series — so that dividend adjustments don’t quietly reshape the incident window.
- Recovery is defined as the first close below baseline followed by a return to baseline, with the trough capped at one year after the event.
- Benchmarks are same-country and same-currency, and optional — a mismatched benchmark is worse than none.
What you get
Each incident becomes one comparable row: abnormal return over the event window, depth of the drawdown, and time to recovery. The companion research template turns public reporting on a new incident into a CSV-ready entry, so the dataset grows without the methodology drifting.
Screenshots
