The Effect of Firm-Specific Environmental Punishment on Stock Price Crash Risk
Evidence From China
Bibliographic Data
| ID | 16914538 |
|---|---|
| Authors | Minghui Li (0000-0001-7847-9240, East China Normal University), Chaohai Shen (0000-0001-5480-0538, East China Normal University, corresponding author), Mengyao Wen (0000-0003-1153-3040, Fudan University) |
| Year | 2023 |
| Volume | 13 |
| Issue | 4 |
| Publication date | 2023-10-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | SAGE Open (JOURNAL) |
| Journal identifiers | ISSN: 2158-2440 • E-ISSN: 2158-2440 |
| Publisher | SAGE Publications (PUBLISHER • US) |
| DOI | 10.1177/21582440231199871 |
| OpenAlex | W4387375928 |
| Language | EN |
| References cited | 77 |
Even though previous studies have investigated the effect of environmental regulation policy on stock price crash risk, little is known about how the firm-specific environmental punishment would impact stock price crash risks. By applying difference-in-difference method with manually collected firm-specific environmental punishment data for the listed firms in China, our study finds that the implemented environmental punishment leads to larger stock price crash risk accumulation of the punished firms. This effect can be mitigated by better information disclosure behavior, higher media reputation, healthy fundamentals, and optimal capital structure. Our study also finds the consecutive punishment effect only exists in a long period. Our work is among the first to rigorously analyze the effect of firm-specific environmental punishment on firm’s stock price crash risk. This research provides relevant policy suggestions on the environmental punishment practice
Actuarial science · Business · China · Crash · Economics · Financial economics · Reputation · Stock exchange · Stock price · Auditing, Earnings Management, Governance · Corporate Social Responsibility Reporting · Engineering · Psychology · Finance
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| Highly cited | No |
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