Zaman, Rashid and Atawnah, Nader and Haseeb, Muhammad and Nadeem, Muhammad and Irfan, Saadia (2021) Does corporate eco-innovation affect stock price crash risk? British Accounting Review, 53 (5). ISSN 0890-8389, DOI https://doi.org/10.1016/j.bar.2021.101031.
Full text not available from this repository.Abstract
We examine the effect of corporate environmental innovation (hereafter eco-innovation) on stock price crash risk and document a significant negative association. Utilising a large sample of publicly listed U.S. firms for the period 2003 to 2017, we find that an increase in eco-innovation from the 25th to the 75th percentile is associated with 17.62% reduction in stock price crash risk. This outcome remains robust to a variety of sensitivity tests and after accounting for potential endogeneity concerns. Eco-innovative firms attract more institutional investors and equity analyst following and disclose more information leading to lower stock price crash risk. Additional tests reveal that the negative effect of eco-innovation is contingent on the political leadership's ideology and environmental sensitivity. Our paper contributes to the ongoing discourse on the costs and benefits of eco-innovation, documenting the value-enhancing perspective of eco-innovation.
| Item Type: | Article |
|---|---|
| Funders: | UNSPECIFIED |
| Uncontrolled Keywords: | Eco-innovation; Stock price crash risk; Information asymmetry; Political leadership's ideology |
| Subjects: | H Social Sciences > HG Finance |
| Divisions: | Faculty of Business and Economics |
| Depositing User: | Ms Zaharah Ramly |
| Date Deposited: | 31 Mar 2022 08:01 |
| Last Modified: | 31 Mar 2022 08:01 |
| URI: | http://eprints.um.edu.my/id/eprint/27872 |
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