Corporate Environmental Initiatives and Anticipated Firm Performance: The Differential Effects of Process-Driven Versus Product-Driven Greening Initiatives

We investigate the influence of environmental initiatives on firms’ anticipated economic performance using an event study methodology. Framing our arguments within an organizational reputation framework, we propose that, due to potential positive effects of these initiatives on firm performance (thr...

Full description

Saved in:
Bibliographic Details
Published inJournal of management Vol. 26; no. 6; pp. 1199 - 1216
Main Authors Gilley, K. Matthew, Worrell, Dan L., Davidson, Wallace N., El–Jelly, Abuzar
Format Journal Article
LanguageEnglish
Published Thousand Oaks, CA Sage Publications 01.12.2000
Sage Publications Ltd
Subjects
Effects
Environmental policy
Financial performance
Hypotheses
Initiatives
Rates of return
Studies
United States > US
Online AccessGet full text

Cover

More Information
Summary:We investigate the influence of environmental initiatives on firms’ anticipated economic performance using an event study methodology. Framing our arguments within an organizational reputation framework, we propose that, due to potential positive effects of these initiatives on firm performance (through increases in reputation), shareholders will react positively to announced environmental initiatives. Contrary to our hypothesis, we found no overall effect of announced environmental initiatives on stock returns. However, our findings indicate that reactions to product-driven initiatives are significantly different than reactions to process-driven ones.
ISSN:0149-2063
1557-1211
DOI:10.1177/014920630002600607