Stock market reaction to environmental lawsuits: Empirical evidence from the case against Boliden-Apirsa

IF 9.8 1区 社会学 Q1 ENVIRONMENTAL STUDIES
Inés Merino Fdez-Galiano , José Manuel Feria-Dominguez , Jacobo Gomez-Conde
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引用次数: 2

Abstract

The aim of this paper is to assess investors' environmental awareness using reputational losses as a punishment for environmental misconduct. To do so, we examine the 17-year court case against Boliden-Apirsa, implicated in one of the worst environmental catastrophes in the European mining industry. We conduct a short-term standard event study on 55 court rulings, published between 2002 and 2015, to analyze the financial market reaction, differentiating between 34 negative court rulings that blame Boliden-Apirsa for the catastrophe and 21 positive court rulings that exonerate the company from any liability. We also estimate the reputational damage faced by the company considering the fine claimed during the judicial process. Using a financial approach (Reputational Cumulative Abnormal Returns, Rep CAR), we identify and isolate the reputational risk linked to environmental lawsuits. The results reveal an immediate negative market response to announcements of court rulings. In addition, our study indicates that investors are more sensitive to announcements of positive court rulings than to negative ones. However, our study does not provide empirical evidence on the existence of reputational damage, in terms of RepCARs, suggesting that the stock market is selective in reacting to these announcements of environmental court rulings.

股市对环境诉讼的反应:来自bolden - apirsa案的经验证据
本文的目的是评估投资者的环境意识,使用声誉损失作为对环境不当行为的惩罚。为了做到这一点,我们研究了17年来对bolden - apirsa的诉讼案件,该案件涉及欧洲采矿业最严重的环境灾难之一。我们对2002年至2015年间发布的55项法院裁决进行了短期标准事件研究,以分析金融市场的反应,区分出34项将灾难归咎于bolden - apirsa的负面法院裁决和21项免除该公司任何责任的正面法院裁决。考虑到在司法程序中所要求的罚款,我们还估计了该公司所面临的声誉损害。使用财务方法(声誉累积异常回报,Rep CAR),我们识别并隔离与环境诉讼相关的声誉风险。调查结果显示,市场对法院裁决的宣布立即做出了负面反应。此外,我们的研究表明,投资者对法院正面裁决的公告比对负面裁决的公告更敏感。然而,我们的研究没有提供关于声誉损害存在的经验证据,就repcar而言,这表明股票市场对这些环境法院裁决公告的反应是有选择性的。
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来源期刊
CiteScore
12.60
自引率
10.10%
发文量
200
审稿时长
33 days
期刊介绍: Environmental Impact Assessment Review is an interdisciplinary journal that serves a global audience of practitioners, policymakers, and academics involved in assessing the environmental impact of policies, projects, processes, and products. The journal focuses on innovative theory and practice in environmental impact assessment (EIA). Papers are expected to present innovative ideas, be topical, and coherent. The journal emphasizes concepts, methods, techniques, approaches, and systems related to EIA theory and practice.
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