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Corporate Environmental Performance and Shareholder Value

White, Mark
Format
Article
Author
White, Mark
Abstract
The role corporations should play in achieving social objectives is a topic with a lengthy history of debate. Significant recent interest has focused on the impact corporate activities have upon the natural world and the environment. This paper examines the link between corporate environmental responsibility--measured by environmental reputation indices--and shareholder wealth. Investors in a portfolio of firms enjoying above-average reputations for corporate environmental responsibility earn risk-adjusted returns significantly greater than either the overall market or portfolios composed of less environmentally-responsible firms. These results are supported by preliminary evidence concerning the value of adopting the CERES Principles, a formal code of corporate environmental responsibility.
Language
English
Date Received
2014-10-21
Published Date
1996
Sponsoring Agency
University of Virginia Online Scholarship Initiative
Rights
All rights reserved (no additional license for public reuse)
Notes
Originally published at http://etext.lib.virginia.edu/osi
Collection
Libra Open Repository

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