 How do environmental policies affect capital market reactions? Evidence from China's construction waste treatment policyHaiyue Liu, Yile Wang, Xiaoshuang Shi and Lina Pang Ecological Economics, 2022, vol. 198, issue C Abstract: Solid waste can cause serious environmental and ecological damage. However, the capital market attitude towards solid waste treatment policies remains unclear. Using an event study method, this paper examined the stock price reactions in Chinese listed firms in pilot construction and demolition waste (C&DW) treatment cities after the policy implementation and found that the pilot city firm stock prices were significantly and negatively affected, with this response being more negative when the firm had not previously been under environmental policy supervision. The cross-sectional analyses indicated that pilot city C&DW stock and treatment capacities, the proportion of state-owned shares, and the firms' political connections all negatively affected market reactions. The study of the capital market signaling effects towards solid waste policies can provide timely assistance to firms that need to adjust their strategic deployment. Keywords: Construction and demolition waste; Environmental policy; Event study; Pilot cities; China (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolec:v:198:y:2022:i:c:s0921800922001239 DOI: 10.1016/j.ecolecon.2022.107461 Access Statistics for this article Ecological Economics is currently edited by C. J. Cleveland More articles in Ecological Economics from Elsevier |
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