  In this study, we evaluate the effects of natural disasters on the stock
(market) values of firms located in the affected counties. We are able to
measure the change in stock prices of the firms affected by the 2021 Texas
winter storm. To measure the abnormal return due to the storm, we use four
different benchmark models: (1) the market-adjusted model, (2) the market
model, (3) the Fama-French three-factor model, and (4) the Fama French plus
momentum model. These statistical models in finance characterize the normal
risk-return trade-off.
