An analysis of the stock market impact of environmental performance information

Corporate Ethical Identity as a Determinant of Firm Performance: A Test of the Mediating Role of Stakeholder Satisfaction

“…Environmental accounting scholars have additionally shed some light by analyzing the impact of voluntary environmental disclosure on firm performance (Cragg, 2002;Lorraine et al, 2004). As a whole, these two lines of research offer supporting evidence in favor of the positive relationship between social disclosure and financial performance.…”

“…First, it enhances the appeal of the firm's shares to the ethical and socially responsible investors (Cragg, 2002;Lorraine et al, 2004).…”

The "Virtuous Circle" Between Corporate Social Performance and Corporate Financial Performance in the European Banking Sector

“…Other studies have established that the relationship between CSP and CFP cannot be proved due to the complex relationship between company and society (Lorraine, Collison, and Power, 2004;King and Lenox, 2001;Murray, Sinclair, Power, and Gray, 2006).…”

Market Valuation of Environmental Performance

“…Blaconniere and Patten (1994), Walden and Schwarte (1997), Klassen and McLaughlin (1996), Lorraine, Collison and Power (2004), and Freedman and Jaggi (1988) Likewise, each environmental concern measure (EC i , where "i" ranges from 0 to 7) is regressed against the annual stock and then, similar to TES, combined into a total concern rating (TEC). This variable is then regressed against annual stock returns.…”

“…Rao's results indicate that actual stock performance for companies with unethical environmental performance is lower than the expected market adjusted returns, 12 months before the announcement to six months after the announcement, indicating the existence of a significant negative reaction to the announcement of unethical environmental behavior. Lorraine, Collison and Power (2004) examined the effect of environmental performance publicity, such as fines for environmental pollution, as well as, commendations for good environmental achievements, on companies' share prices. Four hypotheses were addressed, first, that there is a relationship between environmental news and firms' stock price; second, that good environmental news is associated with an increase in the firms' share price; third, that bad environmental news is associated with a decrease in share price; and fourth, that the cross-sectional variation in unexpected returns is related to environmental news; the size of the fine to sales ratio; and/or the industry classification.…”