The effects of environmental regulation on the stock market: the French experience

Pham, H, Vikash, V and Moosa, I 2019, 'The effects of environmental regulation on the stock market: the French experience', Accounting and Finance, pp. 1-44.


Document type: Journal Article
Collection: Journal Articles

Title The effects of environmental regulation on the stock market: the French experience
Author(s) Pham, H
Vikash, V
Moosa, I
Year 2019
Journal name Accounting and Finance
Start page 1
End page 44
Total pages 44
Publisher Wiley-Blackwell
Abstract This paper investigates the impact of environmental regulation on the French stock market. Using the event study methodology and asset pricing models, we assess the impact of environmental regulation on the stock prices of environmentally-friendly businesses and polluters. Additionally, we estimate the change in systematic risk following the introduction of new regulations. According to the results, the French stock market is particularly sensitive to the environmental regulation embodied in the European Union Emission Trading System (EU-ETS) and less so to the regulation on water, soil and air (WSA). Surprisingly, while the chemicals, oil and gas industries show negative reactions, other polluters (such as construction and materials, and industrial transportation) exhibit positive abnormal returns.
Subject Finance
Keyword(s) Environmental regulation
European Union Emissions Trading System
Systematic risk
Event study
Asset pricing models
DOI - identifier 10.1111/acfi.12469
Copyright notice © 2019 Accounting and Finance Association of Australia and New Zealand
ISSN 1467-629X
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Created: Thu, 23 May 2019, 08:44:00 EST by Catalyst Administrator
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