How Policy Changes Affect Shareholder Wealth: The Case of the Fukushima Daiichi Nuclear Disaster

This paper analyzes how policy changes affect shareholder wealth in the context of environmental regulation. We exploit the unique and unexpected German reaction to the Fukushima Daiichi nuclear disaster, which involved the immediate shutdown of almost half of Germany’s nuclear reactors while safety checks were carried out, and a three-month moratorium on extending the lives of others. Using the event study methodology, our findings indicate a wealth transfer from nuclear energy companies to renewable energies companies in Germany. We moreover find that the joint market capitalization of these firms has decreased, but the amount of this combined decrease is small. Substantial heterogeneity in the shareholder wealth effects across European countries can be linked to different nuclear energy policies. The shareholder wealth of nuclear and conventional energy companies in the United States has been unaffected.electric power, nuclear power, green economy, earthquake, tsunami, event study, environment

The Lintner model revisited: Dividends versus total payouts

We analyze how the introduction of repurchases in 1998, and a major tax reform in 2001, affected the payout policy of German firms. To this end, we estimate Lintner (1956) partial adjustment models for both dividends and total payouts. We also analyze the implications for payout of changes in both permanent and transitory earnings. Our results are inconsistent with the hypothesis that dividends and repurchases are perfect substitutes. They are also inconsistent with the prediction that tax considerations are a major driver of payout decisions. Our results instead support the flexibility hypothesis that predicts that dividends are used to disburse permanent, and repurchases transitory, earnings

Payout policy and event study methodology

The purpose of this dissertation thesis is to investigate how changes in the institutional setting have affected the payout policy of German firms. This dissertation thesis further contributes to the literature on event study methodology by analyzing the measurment of abnormal credit default swap spreads

Disentangling the link between stock and accounting performance in acquisitions

We study the accounting and stock performance of 4547 US acquisitions during 1989 and 2008. We categorise acquisitions into four types based on the four possible combinations of positive or negative abnormal stock performance and abnormal accounting performance. First, we compare the bidder, bid and target characteristics across the four types of acquisitions. We find significant differences. Second, with the help of existing theories we explain these differences in bidder, bid and target characteristics by differences in the acquisition motives

Soziale Wirkungsmessung: Theoretische Grundlagen und ­Anwendungspotentiale für KMU

This article examines the social responsibility of small and medium-sized enterprises (SMEs) and their donation activities. SMEs often emphasize their regional ties and strive to improve the quality of life locally. The challenge is to develop objective and transparent methods for measuring social impact. The article highlights existing shortcomings in common sustainability standards and shows how approaches from the Anglo-Saxon philanthropy sector can contribute to a comprehensive assessment of social impact. The aim is to present methods for objective and transparent measurement of social impact in the context of charitable giving of SMEs and to point out open research questions