428 potentially influencing capital allocation and cost of capital beyond the directly responsible firm. Overall, this study provides quantitative evidence that environmental disasters in mining can generate large and statistically significant value destruction, as well as non-negligible spillover effects, whose magnitude and persistence depend on event severity, visibility, and the dynamics of information diffusion in financial markets. ACKNOWLEDGEMENTS The authors acknowledge the academic support provided by the Department of Mining Engineering at the University of Chile. REFERENCES Assis, T. P., Cordeiro, F. F., & Schiavon, L. C. (2023). How stock market reacts to environmental disasters and judicial decisions: A case study of Mariana’s dam collapse in Brazil. International Review of Law and Economics, 73, 106105. https://doi.org/10.1016/J.IRLE.2022.106105 Bourdeau-Brien, M., & Kryzanowski, L. (2017). The impact of natural disasters on the stock returns and volatilities of local firms. The Quarterly Review of Economics and Finance, 63, 259–270. https://doi.org/10.1016/J.QREF.2016.05.003 Capelle-Blancard, G., & Laguna, M. A. (2010). How does the stock market respond to chemical disasters? Journal of Environmental Economics and Management, 59(2), 192–205. https://doi.org/10.1016/J.JEEM.2009.11.002 Fama, E. F., Fisher, L., Jensen, M. C., & Roll, R. (1969). The Adjustment of Stock Prices to New Information. International Economic Review, 10(1), 1. https://doi.org/10.2307/2525569 Fama, E. F., & French, K. R. (1993). Common risk factors in the returns on stocks and bonds. Journal of Financial Economics, 33(1), 3–56. https://doi.org/10.1016/0304405X(93)90023-5
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