Environmental disclosure as a proactive tool to intra-industry market reaction in China |
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| Authors: | Jun Huang Heng Li Guowei Zhu |
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| Affiliation: | Business School, Hunan University, Changsha, China |
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| Abstract: | This article examines the intra-industry market reaction to successive environmental accidents associated with Sinopec and PetroChina in China. Evidence indicates that a significantly negative intra-industry reaction occurred after these accidents. Furthermore, intra-industry firms with ex-ante environmental disclosures experienced a less negative reaction after successive accidents. Specifically, the mitigating effect of ex-ante environmental disclosures has certain extent of time delay, which differs from the immediate impact of ex-ante environmental disclosure within the context of developed countries. |
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| Keywords: | Environmental disclosure market reaction environmental accidents intra-industry |
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