Stock Market’s Reaction to Disclosure of Environmental Violations: Evidence from China
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 reg...
| Authors: | ; ; |
|---|---|
| Tipo de documento: | Recurso Electrónico Artigo |
| Idioma: | Inglês |
| Verificar disponibilidade: | HBZ Gateway |
| Interlibrary Loan: | Interlibrary Loan for the Fachinformationsdienste (Specialized Information Services in Germany) |
| Publicado em: |
2012
|
| Em: |
Journal of business ethics
Ano: 2012, Volume: 107, Número: 2, Páginas: 227-237 |
| Outras palavras-chave: | B
Event Study
B Information Disclosure B Stock Market B Event window B Environmental violation events |
| Acesso em linha: |
Volltext (JSTOR) Volltext (lizenzpflichtig) |
| Resumo: | 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. |
|---|---|
| ISSN: | 1573-0697 |
| Obras secundárias: | Enthalten in: Journal of business ethics
|
| Persistent identifiers: | DOI: 10.1007/s10551-011-1035-2 |
