Finance Faculty Publications and Presentations
Document Type
Article
Publication Date
10-2024
Abstract
Highlights
- We explore how external and internal firm factors influence the impact of local activism.
- Our results indicate a positive effect of local activism on LIVA.
- Firms tend to increase their environmental disclosures in response to local activism.
- Local activism effects are greater when long-term value is prioritized.
- The findings support the social movement theory.
Abstract
This study uses datasets representing local non-governmental organizations (NGOs) to examine how local environmental organizations enhance long-term investor value appropriation (LIVA). We explore how external and internal firm factors influence the impact of local activism. Our results indicate a positive effect of local activism on LIVA, particularly in contexts where local communities and firm governance structures prioritize long-term value. Furthermore, in examining the mechanisms through which local environmental organizations affect LIVA, we find that firms tend to increase their environmental disclosures in response to local activism. These findings support the social movement theory that social activities inspire firms' social and environmental activities and reporting practices, subsequently affecting LIVA.
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Publication Title
International Review of Financial Analysis
DOI
https://doi.org/10.1016/j.irfa.2024.103506
Recommended Citation
Chung, C.Y., Doan, G.H. and Wang, K., 2024. Local environmental organizations and long-term investor value appropriation. International Review of Financial Analysis, 95, p.103506. https://doi.org/10.1016/j.irfa.2024.103506
Comments
Original published version available at https://doi.org/10.1016/j.irfa.2024.103506