Ahmed Baig, an assistant professor in the Department of Finance, and coauthors had their paper, “Political Protection: The Case of Large-Scale Oil Spills and the Stock Prices of Energy Firms,” accepted for publication in the International Review of Finance.
This study examines how major oil spills impact the stock prices of energy firms. The findings reveal that extraction and refining companies experience significant declines, while pipeline firms face smaller decreases. However, firms with political connections through lobbying are less affected, as these ties help mitigate negative market reactions. The research highlights that while all energy firms are exposed to risks from oil spills, political connections can provide a degree of protection.