RT Journal Article
SR Electronic
T1 Voluntary Environmental Regulation and Firm Performance: <em>The Chicago Climate Exchange</em>
JF The Journal of Alternative Investments
FD Institutional Investor Journals
SP 114
OP 122
DO 10.3905/jai.2012.15.3.114
VO 15
IS 3
A1 Catherine Boulatoff
A1 Carol Boyer
A1 Stephen J. Ciccone
YR 2012
UL https://pm-research.com/content/15/3/114.abstract
AB This article examines stock return and financial performance of firms that voluntarily participated in the Chicago Climate Exchange’s emissions-reduction program. Findings reveal that the stock price of firms joining the program increased by a small, statistically significant amount during the announcement period. Stocks overperformed by about 8% during the first year after the announcement. Financial performance of participating firms also improved compared to a matched sample of non-participating firms. Results support the hypothesis that sustainable business practices provide quantifiable benefits to participating corporations and do no harm to the financial status of the firm, while potentially improving the environment.TOPICS: ESG investing, security analysis and valuation, legal/regulatory/public policy, performance measurement