 Environmental Performance and Share Price: an Empirical Study for Australian Industrial CorporationsD. M. Alden and J. Saleeba No 580, Department of Economics - Working Papers Series from The University of Melbourne Abstract: There is evidence that investors value environmental performance disclosure by companies. This paper attempts to determine whether this environmental performance information affects share price. An index of environmental performance is constructed from a survey of the commitment of corporations to 'good' environmental performance. The inclusion of the index improves the explanatory power of most version of a Constant Growth Model used to estimate the determinants of share price of a sample of Australian industrial companies. However, the results also indicate that share price is not significantly affected by environmental performance. Among the reasons advanced to explain these results is the concern over the accuracy, consistency and reliability of environmental performance information provided by corporations. This leads to the recommendation that corporations undertake standardised corporate environmental performance reporting. Keywords: ENVIRONMENT; AUSTRALIA (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:mlb:wpaper:580 Access Statistics for this paper More papers in Department of Economics - Working Papers Series from The University of Melbourne Department of Economics, The University of Melbourne, 4th Floor, FBE Building, Level 4, 111 Barry Street. Victoria, 3010, Australia. Contact information at EDIRC. |
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