Publication Type

Journal Article

Version

publishedVersion

Publication Date

10-2020

Abstract

The purpose of this paper is to investigate the effect of corporate green announcements on the stock performance of listed companies in New Zealand. We find that the market has a positive, though not significant, reaction to the announcements. New Zealand companies are largely viewed to be already quite green at the onset and the market is not very much surprised by such announcements but expect them to continue being green. Our results are consistent with the view that to be green is costly, especially so in a developed economy where the cost of doing business is high. Our findings underscore the importance for corporate managers in New Zealand that, while any positive green announcements that they make might not have a significant market reaction, they are nonetheless positive.

Keywords

green announcements, market reaction, environment, social responsibility, New Zealand

Discipline

Business and Corporate Communications | Business Organizations Law | Corporate Finance

Research Areas

Finance

Publication

Journal of Sustainability Research

Volume

2

Issue

4

First Page

1

Last Page

15

ISSN

2632-6582

Publisher

Foundation for Sustainability Research and Development

Embargo Period

3-24-2021

Copyright Owner and License

Authors

Creative Commons License

Creative Commons Attribution-Share Alike 4.0 International License
This work is licensed under a Creative Commons Attribution-Share Alike 4.0 International License.

Additional URL

https://sustainability.hapres.com/htmls/JSR_1309_Detail.html

Download

Share

COinS