RT Article
T1 Stock Market’s Reaction to Disclosure of Environmental Violations: Evidence from China
JF Journal of business ethics
VO 107
IS 2
SP 227
OP 237
A1 Xu, X. D.
A1 Zeng, Saixing
A1 Tam, Chiming
A2 Zeng, Saixing
A2 Tam, Chiming
LA English
YR 2012
UL https://ixtheo.de/Record/1785644726
AB The stock market’s reaction to information disclosure of environmental violation events (EVEs) is investigated multi-dimensionally for Chinese listed companies, including variables such as pollution types, information disclosure sources, information disclosure levels, modernization levels of the region where the company locates, ultimate ownership of the company, and ownership held by the largest shareholder. Using the method of event study, daily abnormal return (AR) and accumulative abnormal return (CAR) are calculated under different event window for examining the extent to which the stock market responds to the EVEs. Furthermore, statistical significance of the difference in stock market reaction is compared between event firms with different characteristics. The relationship between CAR and its impact factors is examined by multivariate analysis. The findings reveal that the average reduction in market value is estimated to be much lower than the estimated changes in market value for similar events in other countries, demonstrating that the negative environmental events of Chinese listed companies currently have weak impact on the stock market.
K1 Event window
K1 Event Study
K1 Stock Market
K1 Information Disclosure
K1 Environmental violation events
DO 10.1007/s10551-011-1035-2