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March 18, 2026The Accounting Review

Market Response to Environmental Information Produced Outside the Firm .

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Authors

PSPhilip B. ShaneBSBarry H. SpicerUniversity of Auckland

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Implication

Analysis shows security price changes linked to external environmental reports, indicating investor sensitivity to pollution data.

Key Points

  • This study aims to explore the impact of external environmental performance information on security prices of firms.
  • Analyzed security price movements of firms in response to external environmental performance studies.
  • Focused on eight studies from the Council on Economic Priorities about pollution control in four industries.
  • Examined investor reactions to the information releases to determine effects on perceived future cash flows.
  • Security prices moved in accordance with the release of external environmental performance information.
  • Findings suggest investors differentiate between firms based on their pollution control performance records.
  • Observed price movements imply changes in investor perceptions regarding future cash flows.

Cite This Study

Shane et al. (1983) studied this question.

synapsesocial.com/papers/69ba42cf4e9516ffd37a3727https://doi.org/10.2308/tar-4486747
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Also Consider

Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context:

  1. 1Investors, Corporate Social Performance and Information Disclosure: An Empirical Study .1978 · 7 citations
  2. 2Corporate Environmental Performance and Stock Price Synchronicity: Examining Industry Sensitivity and Disclosure Regimes in Stakeholder‐Oriented Markets2025 · 2 citations
  3. 3Environmental information disclosure and corporate financial performance: Evidence from China2024 · 11 citations
  4. 4STOCK MARKET REACTIONS TO PUBLIC RELEASE OF ENVIRONMENTAL RANKINGS OF HEAVY POLLUTERS: THE ROLE OF ULTIMATE CONTROLLERS2024
  5. 5Environmental Disclosure Versus Environmental Performance: Implications for Corporate Financial Performance and Risk2026