A change in market responses to the environmental management ranking in Japan

Fumiko Takeda, Takanori Tomozawa

Research output: Contribution to journalArticlepeer-review

27 Citations (Scopus)


This article investigates stock price reactions to the release of the environmental management ranking issued by Nihon Keizai Shimbun (Nikkei newspaper) from 1998 to 2005, by using a standard event study methodology. An examination of stock price movements of the top 100 manufacturing companies reveals that stock prices during the sample period did not respond significantly to the release of the ranking within a 3-day event window. However, market responses became significantly positive after 2003, while they were significantly negative in 1999 and 2000. The stock prices of upgraded companies in particular reacted negatively before 2000, but positively after 2002. These results indicate that market reactions were changed between 2001 and 2002, when the Japanese government showed its strong commitment to environmental policies by establishing the Ministry of the Environment and signing the Kyoto Protocol, following a number of legislations.

Original languageEnglish
Pages (from-to)465-472
Number of pages8
JournalEcological Economics
Issue number3
Publication statusPublished - 2008 Oct 15
Externally publishedYes


  • Corporate social responsibility
  • Environmental management
  • Event study
  • Valuation

ASJC Scopus subject areas

  • General Environmental Science
  • Economics and Econometrics


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