Stock Market's Reaction to Disclosure of Environmental Violations: Evidence from China [Book Review]
David Bourget (Western Ontario)
David Chalmers (ANU, NYU)
Rafael De Clercq
Jack Alan Reynolds
Learn more about PhilPapers
Journal of Business Ethics 107 (2):227-237 (2012)
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
|Keywords||Environmental violation events Information disclosure Stock market Event study Event window|
|Categories||categorize this paper)|
Setup an account with your affiliations in order to access resources via your University's proxy server
Configure custom proxy (use this if your affiliation does not provide a proxy)
|Through your library|
References found in this work BETA
Irene Criado-Jiménez, Manuel Fernández-Chulián, Carlos Larrinage-González & Francisco Javier Husillos-Carqués (2008). Compliance with Mandatory Environmental Reporting in Financial Statements: The Case of Spain (2001–2003). [REVIEW] Journal of Business Ethics 79 (3):245 - 262.
Jay J. Janney, Greg Dess & Victor Forlani (2009). Glass Houses? Market Reactions to Firms Joining the Un Global Compact. Journal of Business Ethics 90 (3):407 - 423.
Şükrü Özen & Fatma Küskü (2009). Corporate Environmental Citizenship Variation in Developing Countries: An Institutional Framework. [REVIEW] Journal of Business Ethics 89 (2):297 - 313.
Citations of this work BETA
X. H. Meng, S. X. Zeng & C. M. Tam (2013). From Voluntarism to Regulation: A Study on Ownership, Economic Performance and Corporate Environmental Information Disclosure in China. [REVIEW] Journal of Business Ethics 116 (1):217-232.
X. H. Meng, S. X. Zeng, C. M. Tam & X. D. Xu (2013). Whether Top Executives' Turnover Influences Environmental Responsibility: From the Perspective of Environmental Information Disclosure. [REVIEW] Journal of Business Ethics 114 (2):341-353.
Similar books and articles
Iain Clacher & Jens Hagendorff (2012). Do Announcements About Corporate Social Responsibility Create or Destroy Shareholder Wealth? Evidence From the UK. Journal of Business Ethics 106 (3):253-266.
Wallace N. Davidson, Dan L. Worrell & Chun I. Lee (1994). Stock Market Reactions to Announced Corporate Illegalities. Journal of Business Ethics 13 (12):979 - 987.
G. Steven McMillan (1996). Corporate Social Investments: Do They Pay? [REVIEW] Journal of Business Ethics 15 (3):309 - 314.
S. X. Zeng, X. D. Xu, H. T. Yin & C. M. Tam (2012). Factors That Drive Chinese Listed Companies in Voluntary Disclosure of Environmental Information. Journal of Business Ethics 109 (3):309-321.
Khalil M. Torabzadeh, Dan Davidson & Hamid Assar (1989). The Effect of the Recent Insider-Trading Scandal on Stock Prices of Securities Firms. Journal of Business Ethics 8 (4):299 - 303.
Cheng-Li Huang & Fan-Hua Kung (2010). Drivers of Environmental Disclosure and Stakeholder Expectation: Evidence From Taiwan. [REVIEW] Journal of Business Ethics 96 (3):435 - 451.
Julia Lackmann, Jürgen Ernstberger & Michael Stich (2012). Market Reactions to Increased Reliability of Sustainability Information. Journal of Business Ethics 107 (2):111-128.
Sepideh Parsa & Reza Kouhy (2008). Social Reporting by Companies Listed on the Alternative Investment Market. Journal of Business Ethics 79 (3):345 - 360.
Mohamad Jamal Zeidan (2013). Effects of Illegal Behavior on the Financial Performance of US Banking Institutions. Journal of Business Ethics 112 (2):313-324.
Spuma M. Rao & J. Brooke Hamilton (1996). The Effect of Published Reports of Unethical Conduct on Stock Prices. Journal of Business Ethics 15 (12):1321 - 1330.
Luis Ferruz, Fernando Muñoz & Maria Vargas (2010). Stock Picking, Market Timing and Style Differences Between Socially Responsible and Conventional Pension Funds: Evidence From the United Kingdom. Business Ethics 19 (4):408-422.
Beverly Kracher & Robert R. Johnson (1997). Repurchase Announcements, Lies and False Signals. Journal of Business Ethics 16 (15):1677-1685.
Hoje Jo & Yongtae Kim (2008). Ethics and Disclosure: A Study of the Financial Performance of Firms in the Seasoned Equity Offerings Market. [REVIEW] Journal of Business Ethics 80 (4):855 - 878.
Bingbin Lu, International Harmonization of Disclosure Rules for Cross-Border Securities Offerings: A Chinese Perspective.
Added to index2011-10-05
Total downloads16 ( #116,527 of 1,410,137 )
Recent downloads (6 months)1 ( #177,743 of 1,410,137 )
How can I increase my downloads?