DANCEST 805 Lecture Notes - Lecture 7: Corporate Social Responsibility, Univariate, Critical Role
Document Summary
Market response to expected regulatory costs related to haze. Introduction: recently, rapid industrialization and urbanization of china has occurred at the expense of environmental protection. Impact on the firms future regulations to reduce pollution (increasing domestic and international pressure on the chinese government to implement stronger environmental regulation regulatory costs on firms) Haze was looked up in search engines) issues associated with the event were extremely salient and might be considered by the market. Public outrage and interest high local government had to develop regulatory responses to reduce pollution: discussion of environmental issues by governmental entities increased it was the 1st time in. China"s history that many local governments expressed serious concerns about air pollution increase in regulation additional costs on industry: expectation: negative stock market response to haze-related events. We anticipate that the expected regulatory costs will vary cross-sectionally based upon likely exposure to the additional regulatory costs.
