Investor Response to the Exxon Valdez Oil Spill

Article
Author:White, Mark, McIntire School of CommerceUniversity of Virginia
Abstract:

This study examines the impact of the 1989 Exxon Valdez Oil spill on investment returns to shareholders in two different groups of firms: firms within the oil industry and a sample of unrelated firms with environmental reputation rankings. Within the oil industry, the effects of the spill were strongly negative and idiosyncratic to the exxon corporation. Within the sample of unrelated firms, companies with an exemplary reputation for environmentally responsible behavior earned significantly positive abnormal returns, while companies with neutral or negative environmental reputations showed no response. These latter findings support a proactive approach to corporate environmental management and endorse the role of corporations in achieving a sustainable society.

Keywords:
Exxon Valdez, investment returns, environment, corporate, shareholder
Rights:
All rights reserved (no additional license for public reuse)
Language:
English
Source Citation:

White, Mark. "Investor Response to the Exxon Valdez Oil Spill." University of Virginia Online Scholarship Initiative (1996).

Published Date:
1996
Sponsoring Agency:
University of Virginia Online Scholarship Initiative
Notes:

Originally published at http://etext.lib.virginia.edu/osi/