Do investors’ reactions to environmentally friendly news announcements differ across industries? A comparative analysis of Japan’s food and automotive industries
Recently, investors’ growing awareness of environmental concerns has prompted many businesses to implement green policies and procedures. Investors’ reactions to firms’ environmental efforts vary across different industries. However, few empirical studies have addressed these differences, especiall...
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| Format: | Article |
| Language: | English |
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Vilnius Gediminas Technical University
2022-12-01
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| Series: | Journal of Business Economics and Management |
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| Online Access: | https://jau.vgtu.lt/index.php/JBEM/article/view/18244 |
| _version_ | 1811196165139464192 |
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| author | Miho Murashima |
| author_facet | Miho Murashima |
| author_sort | Miho Murashima |
| collection | DOAJ |
| description |
Recently, investors’ growing awareness of environmental concerns has prompted many businesses to implement green policies and procedures. Investors’ reactions to firms’ environmental efforts vary across different industries. However, few empirical studies have addressed these differences, especially in Japan – the third-largest sustainable investor in the world. Using data from Japanese food and automotive industries, this research examined sector-specific differences in investors’ reactions to firms’ environmental performance, indicated by environmentally friendly news releases, using a short-term event study and Student’s t-tests. Results indicated that investors respond negatively to environmental activities in the food and automobile sectors, supporting neo-classical theory. The data also imply that, in Japan, industry variances have a neutral effect on short-term performance but a significant long-term effect. In addition, long-term investor responses to environmentally friendly news in the food sector are more unfavorable than in the automobile industry. This study has implications for policymakers and managers.
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| first_indexed | 2024-04-12T00:53:59Z |
| format | Article |
| id | doaj.art-c78d12af39a74beb82e80bcb8228346d |
| institution | Directory Open Access Journal |
| issn | 1611-1699 2029-4433 |
| language | English |
| last_indexed | 2024-04-12T00:53:59Z |
| publishDate | 2022-12-01 |
| publisher | Vilnius Gediminas Technical University |
| record_format | Article |
| series | Journal of Business Economics and Management |
| spelling | doaj.art-c78d12af39a74beb82e80bcb8228346d2022-12-22T03:54:40ZengVilnius Gediminas Technical UniversityJournal of Business Economics and Management1611-16992029-44332022-12-0123610.3846/jbem.2022.18244Do investors’ reactions to environmentally friendly news announcements differ across industries? A comparative analysis of Japan’s food and automotive industriesMiho Murashima0College of Business, Rikkyo University, Tokyo, Japan Recently, investors’ growing awareness of environmental concerns has prompted many businesses to implement green policies and procedures. Investors’ reactions to firms’ environmental efforts vary across different industries. However, few empirical studies have addressed these differences, especially in Japan – the third-largest sustainable investor in the world. Using data from Japanese food and automotive industries, this research examined sector-specific differences in investors’ reactions to firms’ environmental performance, indicated by environmentally friendly news releases, using a short-term event study and Student’s t-tests. Results indicated that investors respond negatively to environmental activities in the food and automobile sectors, supporting neo-classical theory. The data also imply that, in Japan, industry variances have a neutral effect on short-term performance but a significant long-term effect. In addition, long-term investor responses to environmentally friendly news in the food sector are more unfavorable than in the automobile industry. This study has implications for policymakers and managers. https://jau.vgtu.lt/index.php/JBEM/article/view/18244environmentinvestor reactionevent studyautomotive industryfood industryJapan |
| spellingShingle | Miho Murashima Do investors’ reactions to environmentally friendly news announcements differ across industries? A comparative analysis of Japan’s food and automotive industries Journal of Business Economics and Management environment investor reaction event study automotive industry food industry Japan |
| title | Do investors’ reactions to environmentally friendly news announcements differ across industries? A comparative analysis of Japan’s food and automotive industries |
| title_full | Do investors’ reactions to environmentally friendly news announcements differ across industries? A comparative analysis of Japan’s food and automotive industries |
| title_fullStr | Do investors’ reactions to environmentally friendly news announcements differ across industries? A comparative analysis of Japan’s food and automotive industries |
| title_full_unstemmed | Do investors’ reactions to environmentally friendly news announcements differ across industries? A comparative analysis of Japan’s food and automotive industries |
| title_short | Do investors’ reactions to environmentally friendly news announcements differ across industries? A comparative analysis of Japan’s food and automotive industries |
| title_sort | do investors reactions to environmentally friendly news announcements differ across industries a comparative analysis of japan s food and automotive industries |
| topic | environment investor reaction event study automotive industry food industry Japan |
| url | https://jau.vgtu.lt/index.php/JBEM/article/view/18244 |
| work_keys_str_mv | AT mihomurashima doinvestorsreactionstoenvironmentallyfriendlynewsannouncementsdifferacrossindustriesacomparativeanalysisofjapansfoodandautomotiveindustries |