Environmental Information Provision, Market Valuation, and Firm Incentives: An Empirical Study of the Japanese PRTR System.

The environmental performance of a listed firm could affect its level of investment in pollution prevention and its access to financial markets. Previous studies using Tobin's q that explore market response to environmental performance do not distinguish between the impact of performance on investme...

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Publicado en:Land Economics Vol. 86; no. 2; pp. 382 - 394
Autores principales: Hibiki, Akira, Managi, Shunsuke
Formato: Artículo
Publicado: University of Wisconsin Press May 2010
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Environmental Information Provision, Market Valuation, and Firm Incentives: An Empirical Study of the Japanese PRTR System.
      aug:
        au:
          Hibiki, Akira
          Managi, Shunsuke
      su:
        Business & the environment
        Information theory in economics
        Valuation
        Mathematical models
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        subj:
          Business & the environment
          Information theory in economics
          Valuation
          Mathematical models
      ab: The environmental performance of a listed firm could affect its level of investment in pollution prevention and its access to financial markets. Previous studies using Tobin's q that explore market response to environmental performance do not distinguish between the impact of performance on investment and market response which may mislead conclusions. To overcome this problem, we simultaneously estimate the functions of the intangible asset, the replacement cost, and the toxic chemical risk. We find that the Japanese financial market does not value risk associated with toxic chemical releases. Nevertheless, even without market valuation, firms increase investment to reduce pollution. (JEL D21, Q58).
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    language: English
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