ENVIRONMENTAL DISCLOSURES, REGULATORY COSTS, AND CHANGES IN FIRM VALUE

• 成果类型: Article
• 署名作者: BLACCONIERE, WG; PATTEN, DM
• 署名单位: Illinois State University
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/0165-4101(94)90026-4
• 发表日期: 1994
• 关键词: horizontal mergers

摘要

Union Carbide's chemical leak in Bhopal, India during December 1984 resulted in approximately 4,000 deaths and 200,000 injuries. This study examines the market reaction of chemical firms other than Union Carbide to this catastrophe. Evidence indicates that a significant negative intra-industry reaction occurred. However, firms with more extensive environmental disclosures in their financial report prior to the chemical leak experienced a less negative reaction than firms with less extensive disclosures. This result suggests that investors interpreted such disclosures as a positive sign of the firm managing its exposure to future regulatory costs.