Impact of Environmental Disaster Movies on Corporate Environmental and Financial Performance

Henry Hyun-Do Kim and Kwangwoo Park
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Henry Hyun-Do Kim: College of Business, Korea Advanced Institute of Science and Technology (KAIST), Seoul 02455, Korea
Kwangwoo Park: College of Business, Korea Advanced Institute of Science and Technology (KAIST), Seoul 02455, Korea

Sustainability, 2021, vol. 13, issue 2, 1-35

Abstract: Using a unique United States box office data set, we investigate the impact of environmental sentiment on corporate environmental and financial performance of the United States listed firms. The influence of mass media on public and investor sentiments is well documented in the existing literature. However, little is known about the effect of movies, although they may influence the public more than other mass media because people, regardless of age and gender, enjoy watching movies. Using the event study methodology and multivariable regression analysis, we show that the release of anthropogenic environmental disaster movie(s) creates environmental sentiment and influences corporate behaviors. Specifically, firms significantly increase their environmental performance in the subsequent year of strong environmental sentiment after the release of environmental movies. More importantly, the positive effect of corporate environmental performance on financial performance is stronger when the environmental sentiment is stronger.

Keywords: environmental movies; corporate environmental performance; corporate financial performance; public sentiment; mass media (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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