The market response to environmental incidents in Canada: a theoretical and empirical analysis.: An article from: Southern Economic Journal

This digital document is an article from Southern Economic Journal, published by Southern Economic Association on January 1, 1994. The length of the article is 6905 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the supplier: Effects on the equity value of 47 Canadian firms after the announcement of environmental incidents were examined to determine whether the market gives monetary incentives to firms for compliance with safety laws. A model describing how investors update their beliefs on the profitability of firms when environmental incidents are announced and showing investors' reaction to the likelihood ofenvironmental lawsuits and investments in emissions control is presented. Results show that stock values drop when firms are fined at the conclusion of lawsuits. In the US, stock values drop upon announcement of a lawsuit, indicating that enforcement of safety laws in Canada are more lax.

Citation Details
Title: The market response to environmental incidents in Canada: a theoretical and empirical analysis.
Author: Benoit lapplante
Publication:Southern Economic Journal (Refereed)
Date: January 1, 1994
Publisher: Southern Economic Association
Volume: v60 Issue: n3 Page: p657(16)

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