TY - JOUR
T1 - The Effect of Firm-Specific Environmental Punishment on Stock Price Crash Risk
T2 - Evidence From China
AU - Li, Minghui
AU - Shen, Chaohai
AU - Wen, Mengyao
N1 - Publisher Copyright:
© The Author(s) 2023.
PY - 2023/10/1
Y1 - 2023/10/1
N2 - 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.
AB - 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.
KW - corporate fundamentals
KW - environmental punishment
KW - information disclosure quality
KW - stock price crash risk
UR - https://www.scopus.com/pages/publications/85173688838
U2 - 10.1177/21582440231199871
DO - 10.1177/21582440231199871
M3 - 文章
AN - SCOPUS:85173688838
SN - 2158-2440
VL - 13
JO - SAGE Open
JF - SAGE Open
IS - 4
ER -