TY - JOUR
T1 - A change in market responses to the environmental management ranking in Japan
AU - Takeda, Fumiko
AU - Tomozawa, Takanori
N1 - Funding Information:
We would like to thank anonymous reviewers for helpful comments and suggestions. Fumiko Takeda gratefully acknowledges financial support from the Sumitomo Foundation.
PY - 2008/10/15
Y1 - 2008/10/15
N2 - This article investigates stock price reactions to the release of the environmental management ranking issued by Nihon Keizai Shimbun (Nikkei newspaper) from 1998 to 2005, by using a standard event study methodology. An examination of stock price movements of the top 100 manufacturing companies reveals that stock prices during the sample period did not respond significantly to the release of the ranking within a 3-day event window. However, market responses became significantly positive after 2003, while they were significantly negative in 1999 and 2000. The stock prices of upgraded companies in particular reacted negatively before 2000, but positively after 2002. These results indicate that market reactions were changed between 2001 and 2002, when the Japanese government showed its strong commitment to environmental policies by establishing the Ministry of the Environment and signing the Kyoto Protocol, following a number of legislations.
AB - This article investigates stock price reactions to the release of the environmental management ranking issued by Nihon Keizai Shimbun (Nikkei newspaper) from 1998 to 2005, by using a standard event study methodology. An examination of stock price movements of the top 100 manufacturing companies reveals that stock prices during the sample period did not respond significantly to the release of the ranking within a 3-day event window. However, market responses became significantly positive after 2003, while they were significantly negative in 1999 and 2000. The stock prices of upgraded companies in particular reacted negatively before 2000, but positively after 2002. These results indicate that market reactions were changed between 2001 and 2002, when the Japanese government showed its strong commitment to environmental policies by establishing the Ministry of the Environment and signing the Kyoto Protocol, following a number of legislations.
KW - Corporate social responsibility
KW - Environmental management
KW - Event study
KW - Valuation
UR - http://www.scopus.com/inward/record.url?scp=50849127132&partnerID=8YFLogxK
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U2 - 10.1016/j.ecolecon.2007.12.027
DO - 10.1016/j.ecolecon.2007.12.027
M3 - Article
AN - SCOPUS:50849127132
SN - 0921-8009
VL - 67
SP - 465
EP - 472
JO - Ecological Economics
JF - Ecological Economics
IS - 3
ER -
