An Analysis of the Wealth Effects of Green

Event study methodology is used to examine the wealth effects, or stock 1993; Shrum, McCarty, and Lowrey, 1995). As these percepprice

reactions, to corporate announcements of green marketing activities. tions have increased, the green movement has received a great

Two procedures for measuring stock price reactions and two different degree of attention by the public in such areas as the media,

tests of significance are used in the study. The results for the sample of the political arena, special interest groups, and consumers

73 firms show that the market value for the average firm in the sample (Vandermerwe and Oliff, 1990; Zimmer, Stafford, and Stafdeclines

by 3.14% during the period from 10 days prior to 10 days after ford, 1994).

the news is announced. Announcements related to green products, recycling The movement has also begun to receive more attention

efforts, and appointments of environmental policy managers result in by managers who are increasingly moving from defensive and

insignificant stock price reactions. However, announcements for green reactive responses to the concern toward pro-active