The Announcement Effect of Environmental Pollution Fine News on Abnormal Stock Returns in Different Industries

• Main Authors: Ching-Fu Lai, 賴景福
• Other Authors: Feng-Tse Tsai
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/39086500306386265918

碩士 === 亞洲大學 === 經營管理學系碩士班 === 101 === The goal of this paper is to study the announcement effect of different kinds of environmental pollution fine news on stock market (measured by abnormal returns of stocks) of listed companies in different industries. The research samples are listed companies in Taiwan which violated environmental protection law and had fines related news announcement from 2002 to 2012. The data are obtained from Corporate Social Responsibility database in Taiwan Economic Journal (TEJ). Empirical results show that the announcement of environmental pollution fine news has negative effect on firm stock prices and the effect is not fully completed on the news announcement date but abnormal stock returns decline in the following days (abnormal return becomes significant in the second day of event announcements). The paper also examines announcement effects of different pollution fine events (water pollution and air pollution) and the finding shows that the announcement effects are negative but insignificant. For companies in different industries, the result shows that news announcement effect is significantly negative for companies in Chemical Industry and no significant effects are found for companies in Electronic Component Industry and Paper Industry. These results demonstrate that environmental pollution fine news have different announcement effects for different industries.