L'attitude des investisseurs boursiers face au bilan environnemental de l'entreprise: une étude canadienne

Denis Cormier and Michel Magnan

ACCRA, 1996, vol. 2, issue 2, 25-49

Abstract: Enterprise environmental performance has become of concern in securities markets. Given this, the present study investigates two complementary hypotheses: (1) Valuation of the firm is affected by its pollution record thus implying existence of latent environmental liabilities (HI) and (2) A valuation premium is attached to firms with a satisfactory pollution record due to the effect of "ethical" investment decisions (H2). The hypotheses have been tested against a sample of firms in three industries: pulp and paper, chemical products and oil refining and steel, metals and twines. Overall, both hypotheses are supported. First, valuation of the firm is directly related to its pollution record such that the worse the record, the greater the extent of environmental liabilities. Second, firms with a better record tend to have higher price/earnings ratios, more recent plant and equipment and lower debt levels.

Keywords: environmental performance; latent environmental liabilities; ethical investment; pollution measurement; stock market valuation premium (search for similar items in EconPapers)
Date: 1996
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