Valuation of Environmental Management Standard ISO 14001: Evidence from an Emerging Market

摘要

ISO 14001 (Environmental Management Standard) helps corporations to build legitimacyand goodwill, and can be also viewed as an organizational response to institutional pressure to actproactively towards the environment. The purpose of this paper is to investigate how investors inthe emerging country value voluntary environmental management standard ISO 14001 certification.The impact of voluntary environmental management standard ISO 14001 on market performanceis still not clear. By using event study methodology, this study matched ISO-certified firms withnon-certified ones based on three different matching principles that include return on assets, size,and industry. The findings indicated that investors negatively valued ISO 14001 in both theshort and long run. The study recommended policy implications for managers, policy makers,and non-government organizations.