What is it about?
We investigate the effects of 18 chemical disasters, oil spills, and pollution alerts on the Chinese stock market from 2003 to 2015.
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Why is it important?
Environmental disasters not only cause severe losses in human lives and well-being but also affect economic and industrial activities, influencing firm performance and investors’ risk perceptions.
Perspectives
Our results show no clear pattern suggesting that polluting industries are the most penalized; however, they indicate that environmental disasters create uncertainties in the market and often change investors’ risk perceptions in both the short and long term.
Dr Krishna Reddy
University of Waikato
Our study contributes to a better understanding of the relationship between environmental disasters and financial market expectations, helping policy makers to address the trade-off between sustainability and industrial growth and manage the risk of environmental disasters more efficiently, while also providing investors and entrepreneurs with insights into the effects of environmental disasters on financial investments.
Dr Krishna Reddy
Toi Ohomai Institute of Technology
Read the Original
This page is a summary of: The Effects of Environmental Disasters and Pollution Alerts on Chinese Equity Markets, Emerging Markets Finance and Trade, May 2018, Taylor & Francis,
DOI: 10.1080/1540496x.2018.1473248.
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