Corporate Environmental Initiatives and Shareholder Value: Focusing on the Role of Environmental Information and Its Credibility

Kimitaka Nishitani and Katsuhiko Kokubu
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Katsuhiko Kokubu: Graduate School of Business Administration, Kobe University

No DP2014-34, Discussion Paper Series from Research Institute for Economics & Business Administration, Kobe University

Abstract: The goal of this paper is to perform an empirical analysis on the impact on shareholder value of corporate environmental initiatives, focusing on the environmental disclosure and its credibility. The authors verified their hypothesis regarding this, which states, "corporations' environmental initiatives improve shareholder value via release of environmental reports. This trend grows stronger when the credibility of the disclosed information is enhanced." The results of the empirical analysis supported this hypothesis. Specifically, it was revealed that corporations that conduct more environmental initiatives release more environmental reports, and corporations that release more environmental reports have higher shareholder value, and the increased credibility gained via the disclosure of information that includes third-party reviews strengthens this trend even further.

Keywords: Environmental Disclosures; Environmental Initiatives; Economic Performance; Improvement in Productivity; Increase in Demand; Fixed Effects Instrumental Variables Model (search for similar items in EconPapers)
Pages: 27 pages
Date: 2014-10
New Economics Papers: this item is included in nep-cse, nep-eff, nep-ene, nep-env and nep-res
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https://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/DP2014-34.pdf First version, 2014 (application/pdf)

Related works:
Working Paper: Corporate Environmental Initiatives and Shareholder Value: Focusing on the Role of Environmental Information and Its Credibility (2014)
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