This paper examines the impact and its duration of the May 12 earthquake on the enterprise value of local listed companies in China by event study method which is suitable for the event with cluster effect, and finds out the influential factors which contribute to the different performance of the local stocks after the earthquake by stepwise regression. The empirical results indicate that the overall significant impact on local listed companies lasts until the 10th day after the event. During this period, the industry category which will benefit from the reconstruction after the earthquake has a significant correlation with the abnormal return of the listed company. After that, the impact is reflected by the different market performance of the individual stocks. The inventory turnover ratio partly explains the difference. Firms with high inventory turnover ratio more rely on the supply chain and vulnerable to the adverse environment after the earthquake. By the 25th day after the earthquake, the impact has died out.