ABSTRACT
Safety professionals should also consider the efficacy damage that a disaster could have on shareholder perception of the operations and on stock value in a publicly held company. Companies have become very bottom line oriented and the influence of Wall Street has become prevalent in day-to-day operations. A disaster of any magnitude will be communicated immediately through television, the internet, and other communication methods to the world. With publicly held companies being
owned by the individuals and entities holding their stock, the value of the company is intrinsically tied to the values of its shares. If a shareholder perceives that the disaster will have a negative impact on the value of his stock, the shareholder will sell the stock. If a sufficient number of shares are sold, the value of the shares diminishes thus leading to a lower value for the company. Lower values equate to tighter budgets, fewer personnel, and other downsizing activity.
