Local environmental organizations and long-term investor value appropriation

Chune Young Chung, Gia Han Doan and Kainan Wang

International Review of Financial Analysis, 2024, vol. 95, issue PB

Abstract: This study uses datasets representing local non-governmental organizations (NGOs) to examine how local environmental organizations enhance long-term investor value appropriation (LIVA). We explore how external and internal firm factors influence the impact of local activism. Our results indicate a positive effect of local activism on LIVA, particularly in contexts where local communities and firm governance structures prioritize long-term value. Furthermore, in examining the mechanisms through which local environmental organizations affect LIVA, we find that firms tend to increase their environmental disclosures in response to local activism. These findings support the social movement theory that social activities inspire firms' social and environmental activities and reporting practices, subsequently affecting LIVA.

Keywords: Corporate environmental responsibility; Environmental disclosure; LIVA; Local organization; Social movement theory (search for similar items in EconPapers)
JEL-codes: G32 G34 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:95:y:2024:i:pb:s1057521924004381

DOI: 10.1016/j.irfa.2024.103506

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