TY - JOUR T1 - Voluntary Environmental Regulation and Firm Performance: <em>The Chicago Climate Exchange</em> JF - The Journal of Alternative Investments SP - 114 LP - 122 DO - 10.3905/jai.2012.15.3.114 VL - 15 IS - 3 AU - Catherine Boulatoff AU - Carol Boyer AU - Stephen J. Ciccone Y1 - 2012/12/31 UR - https://pm-research.com/content/15/3/114.abstract N2 - 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 ER -