Document Type

Dissertation

Degree

Doctor of Philosophy

Department

Business Administration

First Advisor's Name

Clark Wheatley

First Advisor's Title

Committee Chair

Second Advisor's Name

Suchismita Mishra

Third Advisor's Name

Stephen Lin

Fourth Advisor's Name

Kannan Raghunandan

Keywords

Market valuation, Environmental performance

Date of Defense

9-14-2010

Abstract

This research investigated the general association between corporate environmental performance and the firms’ annual returns independent of any particular environmental event. The association analysis was based on the most recent environmental data for the years 2006, 2007, and 2008. The results indicated that while some environmental variables were significantly associated with firms’ returns, the majority were not. The results also indicated that environmental concerns were more likely to be associated with increase in the firm value than were environmental strengths; however, there were no mean differences between firms whose environmental performance increased as compared with those whose performance deteriorated. Overall, the results provided support for the perspective that environmental strengths require firm expenditures that place additional financial burdens on firms, resulting in lower stock returns.

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