The cost of accidental death: A capital market approach

This article analyzes the effect of accidental deaths involving either a firm's workplace or product on the firm's shareholder equity. Significant and sustained losses were found, reaching a peak of over $50 million per fatality during the second week following an accident. The variation in the cumulative percentage loss to the firms due to the accidents is explained by the number of deaths per accident and the riskiness of the product or workplace—the lower the a priori perceived riskiness, the greater the decline in equity.