The Impact of Environmental Information Disclosures on Shareholder Returns in a Company: An Empirical Study

股东 立法 业务 描述性统计 会计 公司治理 代理(统计) 变量 回归分析 企业社会责任 精算学 财务 统计 法学 数学 政治学
作者
Srinivasan Ragothaman,David Carr
出处
期刊:The International Journal of Management 卷期号:25 (4): 613- 被引量:21
摘要

The Emergency Planning and Community Right to Know Act (1986) has mandated Toxic Release Inventory (TRI) disclosures in the United States. This Act requires all manufacturing companies (SIC code 20-39) who employ more than 10 people to provide an annual report about the release of more than 300 specified toxic chemicals. Similar legislation exists in other countries as well. How is this information used by investors and corporations? We develop and test a regression model to answer this question. We also perform a few robustness tests. Our sample comes from TRI disclosures for top 100 corporate polluters based on COMPUSTAT data. Descriptive statistics and correlation measures are also provided. The higher the return on assets the higher is Tobin's q (a proxy for firm value or shareholder wealth). The waste disposal variable (toxic air release) is a statistically significant predictor of Tobin's q. As expected, the sign of the regression coefficient for waste disposal is negative. In addition, firm size has a significant impact on Tobin's q. A firm's beta, P/E ratio, and the corporate governance variable are all statistically insignificant. 1. Introduction The disastrous Union Carbide accident that occurred in India in 1984 and other smaller chemical accidents have caused anxiety in the public's mind about the release of chemicals from factories. The Emergency Planning and Community Right to Know Act (1986) has mandated Toxic Release Inventory TRI disclosures. This Act requires all manufacturing companies (SIC code 20-39) in the United States who employ more than 10 people to provide an annual report about release of more than 300 specified toxic chemicals. The TRI program offers environmental performance information to the public and is administered by the Environmental Protection Agency (EPA). How is this information used by investors and corporations? EPA's Environmental Economics Research Strategy (EPA, 2004) identifies measuring the benefits of environmental information disclosures as one of its high priority research areas. Some interesting research results have already been published. For example, Konar and Cohen (1997) report negative stock price reactions to TRI disclosures in 1989. These negative stock returns forced companies to change tiieir behavior. Those firms with the largest negative stock market returns to TRI announcements in 1989 subsequently reduced their emissions more than other firms in their industry. The purpose this research project is to examine the association between the TRI disclosures and firm value as measured by Tobin's q. The goal of examining the association between the TRI thsclosures and firm value will be accomplished through the development and testing of a regression model. A few robustness tests are also conducted. Tobin's q is a widely used proxy for firm value in the finance literature (Gompers, Ishii and Metrick, 2003) and is used in this study as the dependent variable. Several researchers have conducted event stuthes and documented negative stock price reactions to TRI announcements (Hamilton 1995 and Khanna et al. 1998). Event stuthes examine the stock price reactions on one or two days when the environmental information is thsclosed. Klassen and McLaughlin (1996) also reported significant negative stock price reactions to bad environmental news such as oil spills. These event stuthes do not analyze longer-term stock price trends. These stuthes have generally used smaller samples. Moreover, they have used data from 1989 which are eighteen years old. To overcome these thfficulties, a new regression model is developed which uses more recent data from 2000 TRI thsclosures. The TRI thsclosure data is compiled from raw data reported to the EPA on a facility-by-facility basis and not on a company-bycompany basis. The thfficulty of aggregating to company-level data makes the 2000 TRI thsclosures the most recent data currently available. 2. Prior Research Karpoff and Lott (1993) report that when corporate illegal activities and other fraudulent financial schemes are revealed, stock price declines have been the result. …

科研通智能强力驱动
Strongly Powered by AbleSci AI
更新
大幅提高文件上传限制,最高150M (2024-4-1)

科研通是完全免费的文献互助平台,具备全网最快的应助速度,最高的求助完成率。 对每一个文献求助,科研通都将尽心尽力,给求助人一个满意的交代。
实时播报
刚刚
1秒前
难过的钥匙完成签到 ,获得积分10
3秒前
JamesPei应助善良的焦采纳,获得10
3秒前
zzx完成签到,获得积分10
5秒前
lijingwen发布了新的文献求助10
6秒前
风吹草动玉米粒完成签到,获得积分10
8秒前
杨tong完成签到 ,获得积分10
10秒前
Young完成签到,获得积分10
11秒前
舒心的秋荷完成签到 ,获得积分10
11秒前
大俊哥完成签到,获得积分10
11秒前
独立卫生间完成签到,获得积分10
13秒前
香蕉觅云应助lijingwen采纳,获得30
15秒前
宇智波开心完成签到 ,获得积分10
16秒前
marc107完成签到,获得积分10
17秒前
眼睛大的尔竹完成签到 ,获得积分10
17秒前
信封完成签到 ,获得积分10
17秒前
昵称完成签到,获得积分10
18秒前
Cheshire完成签到,获得积分10
20秒前
20秒前
su完成签到 ,获得积分10
22秒前
QXS完成签到 ,获得积分10
23秒前
踏雪飞鸿完成签到,获得积分10
24秒前
25秒前
川上富江完成签到 ,获得积分10
25秒前
xrkxrk完成签到 ,获得积分10
25秒前
大模型应助Wang采纳,获得10
27秒前
JoaquinH完成签到,获得积分10
27秒前
一帆锋顺完成签到,获得积分10
27秒前
topsun完成签到,获得积分10
27秒前
MathFun完成签到 ,获得积分10
28秒前
明理寄云完成签到,获得积分10
28秒前
。。完成签到 ,获得积分10
29秒前
WeiSONG完成签到,获得积分10
29秒前
天天开心完成签到 ,获得积分10
30秒前
研友_宋文昊完成签到,获得积分10
31秒前
科研通AI2S应助topsun采纳,获得10
31秒前
福娃完成签到,获得积分10
32秒前
赘婿应助悦007采纳,获得10
32秒前
城南烤地瓜完成签到 ,获得积分10
32秒前
高分求助中
Sustainability in ’Tides Chemistry 2000
Studien zur Ideengeschichte der Gesetzgebung 1000
The ACS Guide to Scholarly Communication 1000
TM 5-855-1(Fundamentals of protective design for conventional weapons) 1000
Handbook of the Mammals of the World – Volume 3: Primates 805
Ethnicities: Media, Health, and Coping 800
Gerard de Lairesse : an artist between stage and studio 500
热门求助领域 (近24小时)
化学 医学 生物 材料科学 工程类 有机化学 生物化学 物理 内科学 纳米技术 计算机科学 化学工程 复合材料 基因 遗传学 催化作用 物理化学 免疫学 量子力学 细胞生物学
热门帖子
关注 科研通微信公众号,转发送积分 3072766
求助须知:如何正确求助?哪些是违规求助? 2726386
关于积分的说明 7494082
捐赠科研通 2374336
什么是DOI,文献DOI怎么找? 1258960
科研通“疑难数据库(出版商)”最低求助积分说明 610434
版权声明 597011