RIEB Discussion Paper Series No.2014-13


Corporate Environmental Initiatives and Shareholder Value: Focusing on the Role of Environmental Information and Its Credibility


The goal of this paper is to perform an empirical analysis on the impact on shareholder value of corporate environmental initiatives, focusing on the environmental disclosure and its credibility. The authors verified their hypothesis regarding this, which states, "corporations' environmental initiatives improve shareholder value via release of environmental reports. This trend grows stronger when the credibility of the disclosed information is enhanced." The results of the empirical analysis supported this hypothesis. Specifically, it was revealed that corporations that conduct more environmental initiatives release more environmental reports, and corporations that release more environmental reports have higher shareholder value, and the increased credibility gained via the disclosure of information that includes third-party reviews strengthens this trend even further.


Environmental reports, Third-party comments, Third-party assurances, Environmental initiatives, Tobin's q


Research Institute for Economics and Business Administration,
Kobe University
Rokkodai-cho, Nada-ku, Kobe
657-8501 Japan
Phone: +81-78-803-7036
FAX: +81-78-803-7059

Graduate School of Business Administration, Kobe University

Katsuhiko KOKUBU
Graduate School of Business Administration, Kobe University