TY - JOUR
T1 - Effect of environmental management systems on investor reactions to emission information
AU - Joshi, Satish
AU - Khanna, Madhu
AU - Sidique, Shaufique
PY - 2005
Y1 - 2005
N2 - While environmental management strategies both by the firms and the regulators are converging towards proactive environmental management, the key question remains: do investors, as major stakeholders, recognize, respond and reward firms involved in such proactive environmental management and do these strategies create shareholder value? The answer is critical the sustainability of such efforts. In this paper, we analyze if relative risks of pollutant emissions, pollution preventions activities undertaken by the firm, and the characteristics of firm environmental management systems affect stock market reactions to toxic release information. Event study analysis of a panel dataset of S&P 500 firms suggests that stock market reactions partially incorporate relative risk information, and that pollution prevention efforts and externally visible features of the firm environmental management systems moderate these reactions.
AB - While environmental management strategies both by the firms and the regulators are converging towards proactive environmental management, the key question remains: do investors, as major stakeholders, recognize, respond and reward firms involved in such proactive environmental management and do these strategies create shareholder value? The answer is critical the sustainability of such efforts. In this paper, we analyze if relative risks of pollutant emissions, pollution preventions activities undertaken by the firm, and the characteristics of firm environmental management systems affect stock market reactions to toxic release information. Event study analysis of a panel dataset of S&P 500 firms suggests that stock market reactions partially incorporate relative risk information, and that pollution prevention efforts and externally visible features of the firm environmental management systems moderate these reactions.
KW - EMS
KW - Pollution prevention
KW - Stockmarket
UR - http://www.scopus.com/inward/record.url?scp=85207380141&partnerID=8YFLogxK
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U2 - 10.5465/ambpp.2005.18783309
DO - 10.5465/ambpp.2005.18783309
M3 - Conference article
AN - SCOPUS:85207380141
SN - 0065-0668
JO - Academy of Management Annual Meeting Proceedings
JF - Academy of Management Annual Meeting Proceedings
T2 - 65th Annual Meeting of the Academy of Management, AOM 2005
Y2 - 5 August 2005 through 10 August 2005
ER -