Work

Environmental Information and Market Reactions to Environmental Legislation

Year: 1997

Type: article

Abstract: Environmental issues have attracted national attention and are becoming a focus at many firms. This paper examines the relation between stock price reactions to the Superfund Amendments and Reauthorization Act (SARA) of 1986 and environmental information. We include alternative information sources in a test of the value relevance of environmental data. We find some evidence that chemical firms with more extensive environmental disclosures included in their 10-K reports had a less negative reaction to SARA, while firms with greater exposure to Superfund costs (based on EPA data) had a more negative market reaction. A primary contribution of our research is the finding that both financial statement environmental disclosures and estimated Superfund costs have incremental value relevance.

Source: Journal of Accounting Auditing & Finance

DOI: 10.1177/0148558x9701200203

Authors: Walter G. Blacconiere, W. Dana Northcut

Institutions: Indiana University Bloomington, Indiana University, University of Chicago

Language: English

Topic: Corporate Social Responsibility Reporting

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W1828973564

FWCI: 14.39

Cites: 23

Cited by: 246

Related to: 10