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- Title
Stock Market Reaction to Green Vehicle Innovation.
- Authors
Ba, Sulin; Lisic, Ling Lei; Liu, Qindong; Stallaert, Jan
- Abstract
We study the stock market reaction to announcements of global green vehicle innovation over a 14-year time span (1996-2009) using the event study methodology. We document that the stock market generally reacts positively to automakers' announcements of environmental innovations, consistent with prior research on the wealth effects of innovation announcements. Our results indicate that crucial green product development decisions such as innovation type and market segment choices exert direct influence on a firm's market value. These results hold after controlling for firm size, leverage, profitability, R&D intensity, and oil price changes.
- Subjects
STOCK exchanges; GREEN products; AUTOMOBILE industry; NEW product development; MARKET value; PROFITABILITY; RESEARCH &; development
- Publication
Production & Operations Management, 2013, Vol 22, Issue 4, p976
- ISSN
1059-1478
- Publication type
Article
- DOI
10.1111/j.1937-5956.2012.01387.x