Graduation Year


Date of Submission


Document Type

Campus Only Senior Thesis

Degree Name

Bachelor of Arts


Environment, Economics, and Politics (EEP)

Reader 1

Mary F. Evans

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This paper investigates how the stock market reacts to public disclosures of environmental and safety violations based on information from the Pipeline and Hazardous Materials Safety Administration (PHMSA), the main federal agency that regulates energy and hazardous materials transportation in the oil and gas sector. Using an event study methodology, I find no evidence of negative abnormal returns following the announcement of PHMSA violations between 2002 and 2018. Nevertheless, I find empirical evidence consistent with pre-announcement information leakage and differential impacts based on the type of enforcement action issued by PHMSA and the relative size of the proposed penalty.

This thesis is restricted to the Claremont Colleges current faculty, students, and staff.