Stock market reactions to public release of environmental rankings of heavy polluters: the role of ultimate controllers
Files
(Published version)
Date
2024
Authors
Xu, H.
Deng, X.
Shen, J.
Editors
Advisors
Journal Title
Journal ISSN
Volume Title
Type:
Journal article
Citation
Singapore Economic Review, The, 2024; 69(5):1765-1786
Statement of Responsibility
Conference Name
Abstract
Adopting the event study method, this paper examines how the stock market reacts to the public release of environmental performance rankings of heavy polluters. Specifically, we explore the impact of the public release of the 100 best and 100 worst companies in terms of environmental performance on the stock prices of companies involved, and the potential moderation of ultimate controllers. We find that the stock prices of the companies on the lists were negatively affected by the event. However, stock price changes are not significantly related to the relative rankings on the list. Furthermore, companies whose ultimate controllers possess a larger control-ownership wedge experienced a less severe fall in stock prices than did their counterparts. This study sheds light on the nuances of the financial implications of negative environmental publicity.
School/Discipline
Dissertation Note
Provenance
Description
Access Status
Rights
Copyright 2024 World Scientific Publishing
Access Condition Notes: Accepted manuscript available after 1 July 2025