Back to Search
Start Over
How do environmental policies affect capital market reactions? Evidence from China's construction waste treatment policy.
- Source :
-
Ecological Economics . Aug2022, Vol. 198, pN.PAG-N.PAG. 1p. - Publication Year :
- 2022
-
Abstract
- Solid waste can cause serious environmental and ecological damage. However, the capital market attitude towards solid waste treatment policies remains unclear. Using an event study method, this paper examined the stock price reactions in Chinese listed firms in pilot construction and demolition waste (C&DW) treatment cities after the policy implementation and found that the pilot city firm stock prices were significantly and negatively affected, with this response being more negative when the firm had not previously been under environmental policy supervision. The cross-sectional analyses indicated that pilot city C&DW stock and treatment capacities, the proportion of state-owned shares, and the firms' political connections all negatively affected market reactions. The study of the capital market signaling effects towards solid waste policies can provide timely assistance to firms that need to adjust their strategic deployment. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 09218009
- Volume :
- 198
- Database :
- Academic Search Index
- Journal :
- Ecological Economics
- Publication Type :
- Academic Journal
- Accession number :
- 157104361
- Full Text :
- https://doi.org/10.1016/j.ecolecon.2022.107461