The Effects of Environmental Innovation on Market Value

Environmental Innovation;Eco-innovation;Corporate Social Responsibility;Sustainability;Market Value;Event Study;Management Sciences

Sheppard, Michael

University of Waterloo

关键词: Environmental Innovation;    Eco-innovation;    Corporate Social Responsibility;    Sustainability;    Market Value;    Event Study;    Management Sciences;   

Others  :  https://uwspace.uwaterloo.ca/bitstream/10012/3329/1/mjsheppard2007.pdf

瑞士|英语

来源: UWSPACE Waterloo Institutional Repository

【 摘 要 】

This paper describes the effects of environmental innovation, or EI, on the market value of a firm. EI involves the creation or enhancement of ;;green’ products or ;;eco-efficient’ production processes which result in improved environmental performance.The study involves the selection of a number of press releases related to EI and environmental performance.These form the basis of an event study to determine the effect of these announcements on share prices.Results indicate that the market recognizes the value of EI, especially for product-driven initiatives.It is also found that the market values good environmental performance, particularly when it has been recognized externally through an award, membership, or certification.Implications for policy and for management are discussed.