unraveling the effects of environmental outcomes and processes on financial performance a non linear approach abstract we examine the roles of the outcome and process dimensions of environmental performance in determining financial performance as measured by tobin s q outcomes refer to the impacts of the firm on the natural environment while processes are the firm s actions to reduce these outcomes we focus on a specific outcome carbon emissions and suggest that it affects tobin s q non linearly we find that firms achieve the highest financial performance when their carbon performance is neither low nor high but intermediate we also find that environmental processes moderate this relationship as they reinforce firms financial performance through improved stakeholder management this mixed picture suggests that firms do not generally internalize the costs of poor carbon performance but those that stand out in both environmental outcomes and processes achieve net financial benefits these findings are based on a sample of carbon intensive firms that disclosed their greenhouse gas ghg emissions through the carbon disclosure project from 2007 through 2013

the management of greenhouse gas emissions and its effects on firm performance abstract climate change is a reality and the dramatic reduction of greenhouse gas ghg emissions by developed countries is a moral obligation it represents also a unique opportunity to modernize the economy and to improve the competitiveness of firms the purpose of this study is to analyze how greater consideration to the impact of their activities on the environment as well as the control and reduction of co2 emissions can improve the economic performance of firms a modern and efficient approach to the management of emissions helps to identify the activities with high energy consumption which can lead to potential savings and also to maximize image return to customers sensitive to environmental issues an econometric model that quantifies these effects is here applied to a sample of large italian firms and evidence demonstrates that the adoption of an ems environmental management system together with an appropriate control of emissions could lead to profits through an increase in demand and productivity however the improvement of productivity is weaker than the increase in demand suggesting that there is a delay between the start of the environmental efforts and the realization of economic performances

what drives corporate social performance the role of nation level institutions based on whitley s national business systems nbs institutional framework we theorize about and empirically investigate the impact of nation level institutions on firms corporate social performance csp using a sample of firms from 42 countries spanning seven years we construct an annual composite csp index for each firm based on social and environmental metrics we find that the political system followed by the labor and education system and the cultural system are the most important nbs categories of institutions that impact csp interestingly the financial system appears to have a relatively less significant impact we discuss implications for research practice and policymaking

the impact of a carbon tax on the susquehanna river basin economy abstract this paper presents the first study of the economic impacts of a carbon tax on an environmentally delineated sub national area the study is based on a 32 sector computable general equilibrium model of the susquehanna river basin srb of the us a special feature of the analysis is that it incorporates changes in prices of traded goods facing the focal region as a result of the imposition of a tax imposed globally the results show that a tax of 16 96 per ton of carbon could have rather negligible negative impacts on the srb economy as a whole but that the negative impacts on its energy industries could be sizeable also several sensitivity tests on closure rules and key parameter values indicate that the results are rather robust

day of the week effects and asset returns the number of empirical studies using daily stock returns is rapidly increasing researchers generally assume that the distribution of stock returns is identical for all days of the week a convenient statistical assumption but not a necessary condition of market equilibrium nevertheless there are reasons to suspect that the distribution of returns may vary according to the day of the week the most obvious is the impact of weekends on monday s return since monday s return is calculated over three instead of one calender day the mean and variance may well be higher on monday compared with any other daily return perhaps three times as large previous research has examined the daily distribution of stock returns for a monday effect while fama 1965 does not compare daily mean returns he does report that monday s variance is about 20o greater than other daily returns with a traditional distributional assumption regarding the returns on a financial asset specifies that the expected returns are identical for all days of the week contrary to this plausible assumption this paper discovers that the expected returns on common stocks and treasury bills are not constant across days of the week the most notable evidence is for monday s returns where the mean is unusually low or even negative several explanations of the results are investigated but none proves satisfactory aside from documenting significant day of the week effects the implications of the results for tests of market efficiency are examined while market adjusted returns continue to exhibit day of the week effects these effects are no longer concentrated on monday during the last year we have had many conversations with our colleagues throughout the professions we are particularly thankful to the participants at sessions of the western and american finance associations where preliminary versions of this paper were presented special thanks are due to gene fama gailen hite jon ingersoll robert jarrow merton miller clifford smith and rex thompson the expert research assistance of frank rabinovitch and youngsup yun is gratefully acknowledged 1 the list of papers using daily stock returns is too long to name recent examples include charest 1978 dodd 1980 banz 1981 and reinganum 1981

sports sentiment and stock returns this paper investigates the stock market reaction to sudden changes in investor mood motivated by psychological evidence of a strong link between soccer outcomes and mood we use international soccer results as our primary mood variable we find a significant market decline after soccer losses for example a loss in the world cup elimination stage leads to a next day abnormal stock return of 49 basis points this loss effect is stronger in small stocks and in more important games and is robust to methodological changes we also document a loss effect after international cricket rugby and basketball games this paper employs a novel mood variable international soccer results to investigate the effect of investor sentiment on asset prices using a cross section of 39 countries we find that losses in soccer matches have an economically and statistically significant negative effect on the losing country s stock market for example elimination from a major international soccer tournament is associated with a next day return on the national stock market index that is 38 basis points lower than average we also document a loss effect after international cricket rugby and basketball games on average the effect is smaller in magnitude for these other sports than for soccer but is still economically and statistically significant we find no evidence of a corresponding effect after wins for any of the sports that we study controlling for the pre game expected outcome we are able to reject the hypothesis that the loss effect after soccer games is driven by economic factors such as reduced productivity or lost revenues we

the role of corporate sustainability performance for economic performance a firm level analysis of moderation effects abstract this paper analyses the link between sustainability management and economic performance its main research question concerns the association of social responsibility and environmental management with economic performance determinants of the latter and possible moderation effects based on data collected from financial databases and kinder lydenberg domini for the period 1992 to 2003 the paper analyses the link of corporate sustainability performance with economic performance using panel estimation techniques the analysis shows that advertising intensity moderates the association of corporate sustainability performance and economic performance as measured by tobin s q for research and development efforts relative to firm size no moderating role on the link between corporate sustainability and economic performance is identified a sensitivity analysis using separate measures for social and environmental performance reveals that the latter only has a direct effect and the former only a fully moderated effect on economic performance policy and management implications of these findings are discussed

climate policy and energy intensive manufacturing a comprehensive analysis of the effectiveness of cost mitigation provisions in the american energy and security act of 2009 abstract in response to the ongoing climate policy debates this study examines the cost impacts of carbon pricing legislation on selected us energy intensive manufacturing industries specifically it evaluates output based rebate measures and the border adjustment provision specified in the bill and tests the effectiveness of cost containment features of the policy such as the international offsets under various market assumptions results of the examination confirm that in all policy cases or industries the output based rebates would effectively mitigate the manufacturers carbon pricing costs in the short to medium term however as the rebates decline after 2020 especially in a case where low carbon electricity generation or international offsets are not readily available or implemented these industries would suffer greater declines in profitability at the same time the study s findings were mixed concerning the effectiveness of the border adjustment measure in reducing cost impacts after 2020 while border adjustments could reduce costs to us manufacturing sectors at least temporarily they could create problems for domestic downstream producers and exports under cost pass along conditions however at best the output based rebates international offset and border adjustment and measures primarily buy time for manufacturers the only long term solution is for eite industries to invest in energy saving and next generation low carbon technologies

the macro and asset pricing implications of rising italian uncertainty evidence from a novel news based macroeconomic policy uncertainty index abstract we develop a new monthly and daily index of economic policy uncertainty for italy based on articles from the sole 24 ore a popular italian business daily newspaper var investigations document that an unexpected rise in the sole 24 ore news based epu index epu24 has mild effects on the real economic activity cross sectional asset pricing tests then show that both monthly and daily epu24 shocks command a positive risk premium a standard event study finally indicates the presence of statistically significant positive cumulative abnormal returns cars in the energy sector following different categories of policy related events negative and significant cars in the financial sector are instead found to be generated by international related events and political elections

a new look at the monday effect it is well documented that expected stock returns vary with the day of the week the monday or weekend effect in this article we show that the well known monday effect occurs primarily in the last two weeks fourth and fifth weeks of the month in addition the mean monday return of the first three weeks of the month is not significantly different from zero this result holds for most of the subperiods during the 1962 1993 sampling period and for various stock return indexes the monthly effect reported by ariel 1987 and lakonishok and smidt 1988 cannot fully explain this phenomenon

tackling false positives in business research a statistical toolbox with applications serious concerns have been raised that false positive findings are widespread in empirical research in business disciplines this is largely because researchers almost exclusively adopt the p value less than 0 05 criterion for statistical significance and they are often not fully aware of large sample biases which can potentially mislead their research outcomes this paper proposes that a statistical toolbox rather than a single hammer be used in empirical research which offers researchers a range of statistical instruments including a range of alternatives to the p value criterion such as the bayesian methods optimal significance level sample size selection equivalence testing and exploratory data analyses it is found that the positive results obtained under the p value criterion cannot stand when the toolbox is applied to three notable studies in finance

the day of the week effect the international evidence abstract we re examine the day of the week effect for eleven indexes from nine countries during the 1969 1992 period the standard methodology as well as the moving average methodology are used and we find returns to be lower at the beginning of the week but not necessarily on monday for the full period as in chang et al international evidence on the robustness of the day of the week effect journal of financial and quantitative analysis 28 1993 497 514 the anomaly disappears for the most recent period in the usa however the effect is still strong for european countries hong kong and toronto

stock market returns a note on temperature anomaly this study investigates whether stock market returns are related to temperature research in psychology has shown that temperature significantly affects mood and mood changes in turn cause behavioral changes evidence suggests that lower temperature can lead to aggression while higher temperature can lead to both apathy and aggression aggression could result in more risk taking while apathy could impede risk taking we therefore expect lower temperature to be related to higher stock returns and higher temperature to be related to higher or lower stock returns depending on the trade off between the two competing effects we examine many stock markets world wide and find a statistically significant negative correlation between temperature and returns across the whole range of temperature apathy dominates aggression when temperature is high the observed negative correlation is robust to alternative tests and retains its statistical significance after controlling for various known anomalies

carbon tax simulations using a household demand model abstract the main objective of this paper is to analyse consumer response and welfare effects due to changes in energy or environmental policy to achieve this objective we formulate and estimate an econometric model for non durable consumer demand in sweden that utilises micro and macro data in the simulations we consider two revenue neutral scenarios that both imply a doubling of the co2 tax one that returns the revenues in the form of a lower vat and one that subsidise public transport one conclusion from the simulations is that the co2 tax has regional distribution effects in the sense that household living in sparsely populated areas carry a larger share of the tax burden

what do we know about carbon taxes an inquiry into their impacts on competitiveness and distribution of income abstract the kyoto protocol to the united nations framework convention on climate change unfccc has set legally binding emissions targets for a basket of six greenhouse gases and timetables for industrialised countries it has also incorporated three international flexibility mechanisms however the articles defining the flexibility mechanisms carry wording that their use must be supplemental to domestic actions this has led to the open debates on interpretations of these supplementarity provisions such debates ended at the resumed sixth conference of the parties cop to the unfccc held in bonn july 2001 and at the subsequent cop 7 in marrakesh november 2001 the final wording in the bonn agreement reaffirmed in the marrakesh accords at least indicates that domestic policies will have an important role to play in meeting annex b countries emissions commitments carbon taxes have long been advocated because of their cost effectiveness in achieving a given emissions reduction in this paper the main economic impacts of carbon taxes are assessed based on a review of empirical studies on existing carbon energy taxes it is concluded that competitive losses and distributive impacts are generally not significant and definitely less than often perceived however given the ultimate objective of the framework convention future carbon taxes could have higher rates than those already imposed and thus the resulting economic impacts could be more acute in this context it has been shown that how to use the generated fiscal revenues will be of fundamental importance in determining the final economic impacts of carbon taxes finally we briefly discuss carbon taxes in combination with other domestic and international instruments

an analysis on the short term sectoral competitiveness impact of carbon tax in china abstract market based instruments particularly carbon tax have recently drawn the attention of chinese government by their cost effective contribution to the achievement of china s climate targets most of the recent policy proposals have focused on its long term impact however particularly for policy makers both long term and short term effects of carbon tax would be necessary when determining tax rates we provided a detailed analysis of short term impacts of carbon tax on sectoral competitiveness in this paper we divided china s economy into 36 sectors based on its 2007 input output table in order to examine the ratio of carbon tax added costs to sector gdp we were thus able to determine the impact level of a carbon tax on each sector we then divided the sectoral trade impact into domestic competitiveness with regards to foreign imported products and international competitiveness external to the chinese domestic market we found that a high tax level 100 yuan t co2 may necessitate compensatory measures to certain highly affected industries and that a low tax rate 10 yuan t co2 would generate few competitiveness problems for all industries and may therefore be considered as an appropriate starting point

the economic and environmental impact of a carbon tax for scotland a computable general equilibrium analysis using a disaggregated energy economy environmental model we investigate the economic and environmental impact of a scottish specific carbon tax under three alternative assumptions about the use of the revenue raised by the tax revenues raised are not recycled within scotland revenues are used to increase general government expenditure or to reduce scottish income tax we find that by imposing a tax of 50 per tonne of co2 the 37 co2 reduction target is met with a very rapid adjustment in all three cases if the model incorporates forward looking behaviour however the adjustment is much slower if agents are myopic in addition the results of the model suggest that a carbon tax might simultaneously stimulate economic activity whilst reducing emissions and thus secure a double dividend but only for the case in which the revenue is recycled through income tax

addressing the competitiveness effects of taxing carbon in china domestic tax cuts versus border tax adjustments abstract this study focuses on the international competitiveness effects of levying a carbon tax in china based on a computable general equilibrium model this study analysed the impacts of a carbon tax on different sectors from the aspect of changes in market shares of domestic producers in the domestic markets and changes in exports the effects of different measures including domestic tax cuts and border tax adjustments in alleviating the unfavourable competitiveness impacts were also analysed and compared as were the impacts of different tax schemes on the macro economy sectoral profits and carbon emissions the results show that without any complementary measures a carbon tax would negatively shock the domestic market shares and exports of almost all tradable sectors and the profits of almost all sectors as for cushioning the unfavourable effects the domestic tax cuts are able to ease the negative impacts on the domestic market shares and exports of almost all tradable sectors moreover the unfavourable impacts of domestic tax cuts on both the macro economy and the sectoral profits are obviously smaller than those of the other schemes regardless of the use of the same tax rate or emission reduction amount among the border tax adjustment measures the best performance in general corresponds to the measure purely implementing adjustments on exports

control rights and capital structure an empirical investigation we show that incentive conflicts between firms and their creditors have a large impact on corporate debt policy net debt issuing activity experiences a sharp and persistent decline following debt covenant violations when creditors use their acceleration and termination rights to increase interest rates and reduce the availability of credit the effect of creditor actions on debt policy is strongest when the borrower s alternative sources of finance are costly in addition despite the less favorable terms offered by existing creditors borrowers rarely switch lenders following a violation a fundamental question in financial economics is how do firms choose their financial policies extant empirical research on this question has focused primarily on the presence of taxes and bankruptcy costs e g scott 1976 information asymmetry e g myers and majluf 1984 and more recently market timing behavior e g baker and wurgler 2002 however beginning with jensen and meckling 1976 a large body of theoretical research examines how incentive conflicts between managers and external investors affect corporate financial policies in particular theoretical research on financial contracting shows that in the presence of incentive conflicts optimal debt contracts will allocate certain rights to creditors after negative performance in order to help firms secure financing ex ante e g aghion and bolton 1992 and dewatripont and tirole

shareholder value stakeholder management and social issues what s the bottom line we test the relationship between shareholder value stakeholder management and social issue participation building better relations with primary stakeholders like employees customers suppliers and communities could lead to increased shareholder wealth by helping firms develop intangible valuable assets which can be sources of competitive advantage on the other hand using corporate resources for social issues not related to primary stakeholders may not create value for shareholders we test these propositions with data from s p 500 firms and find evidence that stakeholder management leads to improved shareholder value while social issue participation is negatively associated with shareholder value copyright 2001 john wiley sons ltd

energy substitution efficiency and the effects of carbon taxation evidence from china s building construction industry as buildings are constructed to be more energy efficient and environmental friendly the building construction industry which is a basic and leading industry of the national economy development has become one of the key sectors for energy conservation and emission reduction in china this paper aims at quantifying both inter factor and inter energy substitution for china s building construction industry and investigate the main driving forces behind energy efficiency changes as well as the co2 abatement effect of a uniform carbon tax in this sector the model is established employing provincial pooled data over 2003 2012 in china by regions hence results between different regions are compared the main findings indicate that i energy and non energy are substitutes whereas individual energy inputs are complementary in china s building construction industry the substitution effect varies across regions due to different factor endowments and marketization levels ii energy price increase and construction scale expansion leads to energy efficiency improvement while substitution and technology present negative influences on energy efficiency iii approximately 3 of the co2 emissions in china s building construction industry can be reduced by carbon taxation based on the integrated own and cross price elasticities of each energy

international evidence on the robustness of the day of the week effect consistent with connolly s 1989 1991 evidence this study finds that sample size and or error term adjustments render u s day of the week effects statistically insignificant in contrast day of the week effects in seven european countries and in canada and hong kong are robust to individual sample size or error term adjustments and day of the week effects in five european countries survive the simultaneous imposition of both types of adjustments in most countries where day of the week effects are robust however the effects are statistically significant in not more than two weeks out of the month these findings are inconsistent with explanations of the day of the week effect based on institutional differences or on the arrival of new information thus in the absence of other potential explanations already dismissed by jaffe and westerfield 1985 evidence in this study further complicates the international day of the week effect puzzle

the effect of carbon tax on per capita co2 emissions new huadu business school 09zd050 national social science foundation of china 09zd050 08ajy022 research foundation of ministry of education of china 10jzd0018 fundamental research funds for the central universities 2010221051

the impact of stakeholder power on corporate reputation a cross country corporate governance perspective corporate reputation has roots in national beliefs about the role of the business corporation in society these beliefs are constructed in accordance with the preferences of powerful stakeholders building on a stakeholder power approach to corporate governance we investigate whether differences in the legal rights and protections of shareholders creditors and workers across countries affect the general public s reputation assessments of business corporations using a sample of 593 of the largest publicly traded companies in the world from 32 countries during 2007 to 2011 we find that in societies where shareholders enjoy a high degree of legal rights the impact of stock market returns on corporate reputation becomes more positive likewise the negative relationship between earnings volatility and reputation becomes greater when creditor rights are stronger contrary to expectations we found no evidence of an interaction effect between labor rights and corporate social performance on corporate repu

an examination of the robustness of the weekend effect this paper analyzes the robustness of the day of the week dow and weekend effects to alternative estimation and testing procedures the results show that sample size can distort the interpretation of classical test statistics unless the significance level is adjusted down ward specification tests reveal widespread departures from ols assumptions hypothe sis tests results are reported using robust econometric methods and a garch model the strength of the dow and weekend effect evidence appears to depend on the estimation and testing method both effects seem to have disappeared by 1975

effects of a carbon price in the u s on economic sectors resource use and emissions an input output approach abstract despite differences in their implementation most carbon policies aim to have similar outcomes effectively raising the price of carbon intensive products relative to non carbon intensive products while it is possible to predict the simple broad scale economic impacts of raising the price of carbon intensive products the demand for non carbon intensive products will increase understanding the economic and environmental impacts of carbon policies throughout the life cycle of both types of products is more difficult using the example of a carbon tax this study proposes a methodology that integrates short term policy induced consumer demand changes into the input output framework to analyze the environmental and economic repercussions of a policy environmental repercussions include the direct and the indirect impacts on emissions materials flow in the economy and the reliance on various ecosystem goods and services the approach combines economic data with data about physical flow of fossil fuels between sectors consumption of natural resources and emissions from each sector it applies several input output modeling equations sequentially and uses various levels of aggregation disaggregation it is illustrated with the data for the 2002 u s economy and physical flows the framework provides insight into the short term complex interactions between carbon price and its economic and environmental effects

china s carbon emissions embodied in normal and processing exports and their driving forces 2006 2012 abstract this paper constructed a time series extended input output dataset 2006 2012 to analyze china s carbon emissions embodied in both normal and processing exports at a detailed 135 sector level the structural decomposition analysis sda was further applied to shed light on the driving forces behind the changes in their embodied emissions over the entire time period this empirical study confirms the importance of using the extended model for analyzing the trade related embodiment especially for processing exports the embodied emissions in both normal and processing exports first increased from 2006 to 2008 then dropped during the global financial crisis 2008 2009 and then rose again after 2009 the embodied emissions as a percentage of total co2 emissions were quite stable before and after the global financial crisis at around 24 over the 2006 2008 period and 18 over the 2010 2012 period from 2006 to 2012 emission intensity played the key role in reducing the embodied emissions around 595 mt co2 while the total export effect contributed the most to the increase in embodied emissions around 552 mt co2 similar analysis can be applied to other indicators such as energy water ghg emissions pollutants and materials

is there a monthly effect in stock market returns evidence from foreign countries abstract in a recent paper ariel documents a monthly pattern for u s stock market returns our paper examines this pattern of returns in four other countries we find only weak evidence supporting this phenomenom in these foreign markets just one country exhibits a significant seasonal consistent with ariel s work however we do find stronger evidence of a last day of the month effect in addition there is evidence of a country unique monthly pattern i e one that is not consistent with the u s pattern

fear anger and credit on bank robberies and loan conditions we study the impact of emotions on real world decisions made by loan officers by analyzing the loan conditions of loans granted immediately after a bank branch robbery we find significant differences in conditions of the loans granted after a robbery compared to changes in loan conditions that occur contemporaneously at unaffected branches in general loan officers seem to adopt so called avoidance behaviour in accordance with the literature on posttraumatic stress their avoidance behavior is halved within two weeks after the robbery and the effect further varies depending on the presence of a firearm during the robbery

a resource based perspective on corporate environmental performance and profitability drawing on the resource based view of the firm we posited that environmental performance and economic performance are positively linked and that industry growth moderates the relationship with the returns to environmental performance higher in high growth industries we tested these hypotheses with an analysis of 243 finns over two years using independently developed environmental ratings results indicate that it pays to be green and that this relationship strengthens with industry growth we conclude by highlighting the study s academic and managerial implications making special reference to the social issues in management literature

us day of the week effects and asymmetric responses to macroeconomic news abstract this study considers the joint influence of contemporaneous and lagged responses to macroeconomic news in explaining us day of the week effects macroeconomic news is measured by movements in large firms stock prices the average response of smaller stocks to these movements is abnormally high on mondays especially in down markets after corrections for these asymmetries the us day of the week effect weakens substantially for most size ranked portfolios in most of the six approximately equal subperiods between 1962 and 1992 these findings suggest that seasonals in processing macroeconomic news account for much of the day of the week effect in equity returns

holiday effects and stock returns further evidence this paper provides further evidence of the holiday effect in stock returns and additional insight into the effect this paper reports abnormally high returns on the trading day before holidays in all three of the major stock markets in the u s the nyse amex and nasdaq the holiday effect is also present in the u k and japanese stock markets even though each country has different holidays and institutional arrangements this study finds that the holiday effects in the u k and japanese stock markets are independent of the holiday effect in the u s stock market unlike the other seasonal patterns in stock returns such as january and weekend effects this investigation of size decile portfolios shows that the size effect is not present in mean returns on preholidays

a further investigation of the weekend effect in stock returns this study uses a longer time period and additional stocks to further investigate the weekend effect we find consistently negative monday returns 1 for the s p composite as early as 1928 2 for exchange traded stocks of firms of all sizes and 3 for actively traded over the counter otc stocks the otc results are based on bid prices and therefore appear to reject specialist related explanations for the 30 individual stocks of the dow jones industrial index the average correlation between friday and monday returns is positive and the highest of all pairs of successive days the latter finding is inconsistent with fairly general measurement error explanations some of the most puzzling empirical findings reported in recent years indicate that the distribution of common stock returns varies by day of the week most notably the average return for monday close friday to close monday is significantly negative cross 3 and french 6 find negative monday returns using the standard and poor s composite index and gibbons and hess 7 find negative monday returns for the 30 individual stocks of the dow jones industrial index 1 this negative monday return or weekend effect has yet to be explained this study undertakes a further investigation of the weekend effect in stock returns we examine additional time periods extending the total period covered to 55 years we examine additional stocks such as those of small low capitalization firms and those traded over the counter in all cases the data exhibit a weekend effect that is at least as strong as that reported in previous studies the study also readdresses potential explanations for the effect such as measurement error but concludes that none of these explanations is satisfactory the first section presents a history of the weekend effect from 1928 through 1982 based on the standard and poor s composite index we essentially double the length of the period beginning in 1953 examined by french 6 the results indicate consistently negative monday returns throughout the 55 year period during much of the 25 year period from 1928 through 1952 the new york stock exchange was open on saturdays so monday s return is then computed from saturday s close to monday s close 2 these returns for one day weekends are consistently negative and not significantly different from the two day weekend

do stock markets react to soccer games a meta regression analysis this study applies meta regression analysis to aggregate a sample of 1126 empirical estimates of the stock market reaction to soccer matches collected from 37 primary studies our results indicate

day of the week and intraday effects in stock returns abstract this study examines day of the week effects using hourly values of the dow jones industrial average we find that over the 1963 1983 period the weekend effect has sifted from characterizing active trading on monday to characterizing the non trading weekend over the early part of our sample period negative returns characterize each hour of trading on monday while the return from friday close to monday open is positive in the most recent subperiod monday average hourly returns after noon are all positive and the weekend effect is due to negative average returns from friday close to monday open

good day sunshine stock returns and the weather psychological evidence and casual intuition predict that sunny weather is associated with upbeat mood this paper examines the relationship between morning sunshine in the city of a country s leading stock exchange and daily market index returns across 26 countries from 1982 to 1997 sunshine is strongly significantly correlated with stock returns after controlling for sunshine rain and snow are unrelated to returns substantial use of weather based strategies was optimal for a trader with very low transactions costs however because these strategies involve frequent trades fairly modest costs eliminate the gains these findings are difficult to reconcile with fully rational price setting

the missing link between corporate social responsibility and consumer trust the case of fair trade products this paper investigates the link between the consumer perception that a company is socially oriented and the consumer intention to buy products marketed by that company we suggest that this link exists when at least two conditions prevail 1 the products sold by that company comply with ethical and social requirements 2 the company has an acknowledged commitment to protect consumer rights and interests to test these hypotheses we conducted a survey among the clients of retail chains offering fair trade products the results show that socially oriented companies can successfully leverage their reputation to market products with high symbolic values

economic and welfare influences of an energy excise tax in jiangsu province of china a computable general equilibrium approach abstract in recent years although china s energy intensity has gradually decreased the total consumption of energy commodities has increased sharply levying an excise tax on energy commodities is one of the keys to control energy consumption this paper constructed a computable general equilibrium model to simulate levying an energy excise tax in jiangsu province which is one of china s strong economic provinces with lower endowments of energy resources the results show that the energy excise tax is beneficial for energy saving while levying energy will cause economic and welfare declines when at a level tax rate of 5 10 and 15 the loss of gdp will reach 0 27 0 66 and 1 13 respectively and the incomes of inhabitants and enterprises alike will decrease when the energy tax revenue used to compensate for the welfare losses suffered by inhabitants or enterprises there is a double dividend effect energy saving and increasing income moreover the simulation indicated that a 5 improvement of energy efficiency brings about a backfire phenomenon with an increase of 142 in energy consumption however when considering the cost of energy efficiency improvements the rebound effect will be significantly decreased policy suggestions are further recommended to help improve the energy policy in regard to reducing energy consumption

exploring impact of carbon tax on china s co2 reductions and provincial disparities abstract with fast development it is not easy for china to achieve carbon reduction targets only by traditional command and control measures e g the measures for energy efficiency carbon tax is advocated as one effective complementary measure and has high possibility to be implemented for china s future low carbon development under such a circumstance this paper aims at forecasting the possible impact of carbon tax on both carbon reduction and economic loss of 30 chinese provinces a 30 chinese province cge computational general equilibrium model has been developed to conduct the provincial evaluation and seven scenarios including business as usual bau scenario and six carbon tax scenarios with carbon price from 20 usd ton to 120 usd ton up to 2030 are set the results show that china s industrial co2 will be reduced from 12 2 billion tons under bau scenario to 10 4 billion tons 9 3 billion tons 8 5 billion tons 7 9 billion tons 7 4 billion tons and 7 0 billion tons under scenarios of tax20 tax40 tax60 tax80 tax100 and tax120 in 2030 respectively electricity metal and chemicals sectors have high reduction potentials and are priority sectors for carbon tax policy provincial disparity analysis demonstrates that coal production consumption and total energy consumption are key factors to affect carbon tax effect on co2 reduction and inner mongolia shandong shanxi and hebei have the largest industrial co2 reduction potentials after levying carbon tax however the implementation of carbon tax will impede economic development for all provinces therefore the concept of carbon tax efficiency is further proposed in order to evaluate the effectiveness of carbon tax by considering both co2 reduction and gdp loss policy suggestions indicate that provinces of shanxi inner mongolia hebei and anhui should be set priority when implementing carbon tax policy in china and carbon price should be no more than 50 usd ton

the effects of domestic climate change measures on international competitiveness under the kyoto protocol industrialized countries called annex i countries have to reduce their combined emissions to 5 percent below 1990 levels in the first commitment period of 2008 12 efforts to reduce emissions to meet kyoto targets and beyond have raised issues of competitiveness in countries that are implementing these policies as well as fear of leakage of carbon intensive industries to non implementing countries this has also led to proposals for tariff or border tax adjustments to offset any adverse impact of capping carbon dioxide emissions this paper examines the implications of climate change policies such as carbon tax and energy efficiency standards on competitiveness across industries as well as issues related to leakage if any of carbon intensive industries to developing countries although competitiveness issues have been much debated in the context of carbon taxation policies the study finds no evidence that the energy intensive industries competitiveness is affected by carbon taxes in fact the analysis suggests that exports of most energy intensive industries increase when a carbon tax is imposed by the exporting countries or by both importing and exporting countries this finding gives credence to the initial assumption that recycling the taxes back to the energy intensive industries by means of subsidies and exemptions may be overcompensating for the disadvantage to those industries there is however no conclusive evidence that supports relocation leakage of carbon intensive industries to developing countries due to stringent climate change policies

new findings regarding day of the week returns over trading and non trading periods a note this paper decomposes daily close to close returns into trading day and non trading day returns we discover that all of the average negative returns from friday close to monday close documented in the literature for stock market indexes occurs during the non trading period from friday close to monday open in addition average trading day returns open to close are identical for all days of the week january firm size turn of the year anomalies are shown to be interrelated with day of the week returns

interday variations in volume variance and participation of large speculators abstract we use data uniquely available from the commodity futures trading commission cftc to document the intraweek trading patterns of large speculators in five futures markets these markets include futures traded against the standard and poor s 500 stock index treasury bonds gold corn and soybeans we also examine the influence of large speculator trades on the patterns of volume and volatility for the contracts in our sample though we detect the familiar u shaped and inverted u shaped patterns across weekdays for volatility and aggregate volume the association between volume and volatility becomes stronger when we separate large speculator volume from volume associated with other traders the coefficient on large speculator volume is much larger than the coefficient on other volume in these regressions compared with total volume large speculator volume is greater on mondays than on the other days of the week in all five markets

the pitch rather than the pit investor inattention trading activity and fifa world cup matches this paper analyzes stock market trading in 15 countries during the 2010 and 2014 soccer fifa world cups we find evidence for substantial investor inattention during these major sporting events the lack of attention for the trading pit is particularly large when the national soccer team is competing with traded volumes declining by as much as 48 during national team matches prices on local stock markets can temporarily decouple from global financial market developments these findings suggest that major sporting events can act as a laboratory in which to investigate investor inattention

winter blues a sad stock market cycle and god said let there be light and there was light and god saw that the light was good genesis 1 3 depression has been linked with seasonal affective disorder sad a condition that affects many people during the seasons of relatively fewer hours of daylight experimental research in psychology has documented a clear link between depression and lowered risktaking behavior in a wide range of settings including those of a financial nature through the links between sad and depression and between depression and risk aversion seasonal variation in length of day can translate into seasonal variation in equity returns based on supportive evidence from psychology which suggests sad is linked closely with hours of daylight we consider stock market index data from countries at various latitudes and on both sides of the equator we model differences in the seasonal variation of daylight across coun

environmental disclosures regulatory costs and changes in firm value abstract union carbide s chemical leak in bhopal india during december 1984 resulted in approximately 4 000 deaths and 200 000 injuries this study examines the market reaction of chemical firms other than union carbide to this catastrophe evidence indicates that a significant negative intra industry reaction occurred however firms with more extensive environmental disclosures in their financial report prior to the chemical leak experienced a less negative reaction than firms with less extensive disclosures this result suggests that investors interpreted such disclosures as a positive sign of the firm managing its exposure to future regulatory costs

comprehensive effectiveness assessment of renewable energy generation policy a partial equilibrium analysis in china abstract in order to stimulate renewable energy and control carbon dioxide emissions the chinese government has already introduced lots of renewable energy generation policies under this background it is of great significant to figure out the economic environmental and social effectiveness of these polices firstly this paper systematically studied the framework and content of renewable energy generation policies secondly this paper built a basic partial equilibrium model to calculate the equilibrium state of electricity market and carbon emissions on this base the effectiveness of seven renewable energy generation policies was analyzed by introducing policies into the basic model and comparing relevant indicators in different policy scenarios with that in basic scenario further an empirical analysis was made to estimate the actual benefits of these policies in china this paper proposed an analysis method for evaluating the mechanism effectiveness and efficiency of renewable energy generation policies all the results and discussions in this paper can provide specific suggestions for chinese government to shape a blueprint for implementing different kinds of policies

the dependence between hourly prices and trading volume this study provides evidence on joint characteristics of hourly common stock trading vol ume and returns on the new york stock exchange average volume traded shows signifi cant differences across trading hours of the day and across days of the week average returns differ across hours ofthe day and to some extent across days ofthe week there is a strong contemporaneous relation between trading volume and returns and also a rela tion between trading volume and returns lagged up to four hours furthermore the trading volume returns relation is steeper for positive returns than for nonpositive returns

the individual investor and the weekend effect it is well known that stock returns on average are negative on mondays yet it is less well known that this finding is substantially the consequence of returns in prior trading sessions when friday s return is negative monday s return is negative nearly 80 percent of the time with a mean return of 0 61 percent when friday s return is positive the subsequent monday s mean return is positive 0 11 percent this relationship is stronger than for any other pair of trading days and is most acute in small and medium size companies the trading behavior of individual investors appears to be at least one factor contributing to this pattern individual investors are more active sellers of stock on mondays particularly following bad news in the market

is it in china s interest to implement an export carbon tax abstract considering the dual context of china s domestic willingness to have a cleaner export structure and the widespread concern among developed countries that carbon leakage from developing countries particularly china could threaten their own climate policy effectiveness this paper uses the sicge model to investigate the economic rationale of taxing direct co 2 emissions of export in china with an export carbon tax set at 200 yuan t co 2 three policy scenarios were studied where the tax revenue is undistributed redistributed neutrally to stimulate investment and redistributed neutrally to stimulate consumption according to the model the economic and climate effects of the different policy scenarios are not particularly distinguishable the economic impacts are slightly negative while the effect on the export structure is significant the export of major energy intensive products decreased and the export of certain sectors labour intensive or with higher value added increased resulting in a cut of 3 77 in total direct co 2 emissions from exports the revenue redistribution to stimulate consumption is shown to be the optimal scenario choice which was confirmed by further sensitivity tests by reviewing related wto laws this paper concludes that a clearly designed export carbon tax with a comparable carbon price is in china s own interest while lessening the carbon leakage concerns of developed countries

exploitable predictable irrationality the fifa world cup effect on the u s stock market in a recently published paper edmans garcia and norli 2007 reveal a strong association between results of soccer games and local stock returns inspired by their work we propose a novel approach to exploit this effect on the aggregate international level with the following three unique features i the aggregate effect does not depend on the games results hence the effect is an exploitable predictable effect ii the aggregate effect is based on many games hence it is very large and highly significant we find that the average return on the u s market over the world cup s effect period is 2 58 compared to 1 21 for all days average returns over the same period length iii exploiting the aggregate effect is involved with trading in a single index for a relatively long period

divergence of sentiment and stock market trading this paper introduces the concept of divergence of sentiment to the behavioral finance literature we measure the distance between people with positive and negative sentiment on a daily basis for 20 countries by using data from status updates on facebook the prediction is that a higher divergence of sentiment leads to more diverging views on prospects and risks and thus to more diverging views on the value of a stock in line with this prediction divergence of sentiment is positively related to trading volume we further predict and find a positive relation between divergence of sentiment and stock price volatility the observed relations are stronger when individual investors are more likely to trade we compare the effect of our country specific measures to a global measure of divergence of sentiment we find that the separate effects of country specific and global divergence measures depend on a country s level of market integration

does environmental performance affect financial performance a meta analysis abstract what do we know about the impact of environmental regulations performance on firm performance after more than three decades of theoretical as well as empirical research the results seem to remain inconclusive some papers suggest that regulations harm firms while others claim that regulations may contribute positively and give an impetus to innovations therefore i examine the heterogeneity in financial environmental performance nexus empirically carrying out a meta regression analysis of 64 outcomes from 37 empirical studies to uncover the underlying factors which can influence the observed variation in the empirical results the results suggest both that the empirical method used matters for the nexus and that the likelihood of finding a negative link between environmental and financial performance significantly increases when using simple correlation coefficients instead of more advanced econometric analysis the results also indicate that the portfolio studies tend to report a negative link between environmental and financial performance this likely reflects the omitted factors in portfolio studies the positive link is found more frequently in common law countries than in civil law countries the results also point to the importance of appropriate time coverage to establish a positive link between environmental and financial performance

comparing policies to combat emissions leakage border carbon adjustments versus rebates we explore conditions determining which anti leakage policies might be more effective complements to domestic greenhouse gas emissions regulation we consider four policies that could be combined with unilateral emissions pricing to counter effects on international competitiveness a border charge on imports a border rebate for exports full border adjustment and domestic output based rebating each option faces different potential legal hurdles in international trade law each also has different economic impacts while all can support competitiveness none is necessarily effective at reducing global emissions nor is it possible to rank order the options effectiveness depends on the relative emissions rates elasticities of substitution and consumption volumes we illustrate these results with simulations for the energy intensive sectors of three different economies the united states canada and europe although most controversial full border adjustment is usually most effective but output based rebating for key manufacturing sectors can achieve many of the gains

nonsecular regularities in returns and volume this study addressed u s stock daily returns and volume around days when the market is open that correspond to religious or cultural occasions specifically st patrick s day and the jewish high holy days of rosh hashanah and yom kippur on rosh hashanah and yom kippur volume was found to be down relative to volume on all trading days in the sample the reason may be that the nonfinancial opportunity cost of trading is high for a considerable number of traders on these days returns were significantly higher on the days preceding st patrick s day and rosh hashanah which is consistent with the notion that market returns reflect the festive nature of these occasions evidence was also found of significantly negative returns after yom kippur in the second half of the sample period which accords with the idea that the market reflects the solemn nature of this occasion overall the results are consistent with the view that mood is a viable explanation for some market movements

market value r d and patents abstract a significant relationship is found between the market value of the firm and its intangible capital proxied by past r d expenditures and the number of patents based on a time series cross section analysis of data for large u s firms

return autocorrelations around nontrading days we document a pattern in the serial dependence of security returns around nontrading days the correlation of returns the second day after a weekend or holiday with returns the first day after is unusually low and in many return series is negative implying a reversal of price movements we also document unusually large positive return autocorrelations the last day before and the first day after weekends and holidays the pattern has existed in equity returns for over 100 years and also exists in several futures markets implying that the pattern is robust to alternative market microstructures article published by oxford university press on behalf of the society for financial studies in its journal the review of financial studies

is soccer good for you the motivational impact of big sporting events on the unemployed we examine the effect of salient international soccer tournaments on the motivation of unemployed individuals to search for employment using the german socio economic panel 1984 2010 exploiting the random scheduling of survey interviews we find significant effects on motivational variables such as the intention to work or the reservation wage furthermore the sporting events increase perceived health as well as worries about the general economic situation

on the behavioral differences between professional and amateur investors after the weekend abstract this paper compares the trading patterns of amateur and professional investors during the days following the weekend the comparison is based on all the daily transactions of a large sample of both amateurs and professionally managed investors in a major brokerage house in israel from 1994 to 1998 we find that weekends influence both amateurs and professional investors however they affect them in opposite directions individuals increase both their buy and sell activities and their propensity to sell rises more than their propensity to buy professionals on the other hand tend to perform fewer buy as well as sell trades after the weekend but unlike individuals the drop in their activity is almost the same for buy trades and for sell trades the results agree with previous hypotheses raised in the literature which were not directly tested about the effects of the weekend on the predisposition to trade of individuals and institutions in other markets we also find that returns on the israeli stock market index are correlated in general with the behavioral patterns exhibited by the investors in our sample in particular the returns on the days following the weekend are lower than those in other weekdays in a manner consistent with the behavioral patterns we found

event study methodologies and the size effect abstract this study of 862 press recommendations demonstrates that the size effect can distort longer term performance measures and hence event studies relative to similar sized companies post publication performance is neutral however market adjustments the capm and market model with equally or capitalization weighted indexes all produce biased results event studies are most exposed to such bias when the measurement interval is long event securities differ systematically in size or weighting from the index constituents the size effect is large and or volatile and when capm type methodologies are used these distortions are avoided by explicitly controlling for size

the week end effect in common stock returns the international evidence this paper examines the daily stock market returns for four foreign countries we find a so called week end effect in each country in addition the lowest mean returns for the japanese and australian stock markets occur on tuesday the remainder of the paper answers four questions are seasonal patterns in foreign stock markets independent of those previously reported in the u s do japan and australia exhibit a seasonal one day out of phase due to different time zones do settlement procedures across countries bias week end effects does the seasonal pattern in foreign exchange offset the week end effect in stocks for americans investing overseas some of the most anomalous empirical findings in finance are associated with the sample distributions of daily common stock returns cross 1 french 2 gibbons and hess 3 and keim and stambaugh 4 have documented that the average return on friday is abnormally high and the average return on monday is abnormally low to our knowledge this so called day of the week effect or week end effect has yet to be explained because this anomaly has been reported primarily for u s stock returns it is appropriate to investigate whether similar results occur for other countries positive findings would strongly support the proposition that the weekly seasonal effect is a general world wide phenomenon rather than the result of a special type of institutional arrangement in the u s to shed more light on this proposition our paper examines stock market returns in the u k japan canada and australia since we find a week end effect in each country we can examine a set of interesting questions for example are these seasonals independent of the previously reported seasonal in the u s due to different time zones do far eastern countries exhibit a seasonal one day out of phase do different settlement procedures across countries influence weekend effects does the seasonal in foreign exchange fluctuations see mcfarland pettit and sung 7 and levi 6 offset the week end effect in stock market returns for americans investing overseas

impacts of climate policy on the competitiveness of canadian industry how big and how to mitigate competitiveness concerns have been at the forefront of climate policy debates in canada particularly as a result of its high energy intensity and significant exposure to international markets this paper uses a dynamic computable general equilibrium model to assess the likely impacts on sectoral competitiveness that would accompany efforts to meet greenhouse gas mitigation targets that have been set by the canadian government additionally it evaluates several design mechanisms that could be used to reduce the negative competiveness impacts associated with adoption of domestic climate policies the analysis suggests that several sectors would likely face significant competiveness challenges under a reference scenario in which permits are given to emitters in lump sum however it finds that competiveness impacts can be minimized by using output based recycling of permits or by using border tax adjustments

on the impacts of carbon tax and technological progress on china using a dynamic national computable general equilibrium model we investigate the impact of carbon tax and energy efficiency improvement on the economy and environment of china the chinese social

the impacts of carbon tax and complementary policies on chinese economy under the pressure of global warming it is imperative for chinese government to impose effective policy instruments to promote domestic energy saving and carbon emissions reduction as one of the most important incentive based policy instruments carbon tax has sparked a lively controversy in china this paper explores the impact of carbon tax on chinese economy as well as the cushion effects of the complementary policies by constructing a dynamic recursive general equilibrium model the model can describe the new equilibrium for each sequential independent period e g one year after carbon tax and the complementary policies are imposed and thus describe the long term impacts of the policies the simulation results show that carbon tax is an effective policy tool because it can reduce carbon emissions with a little negative impact on economic growth reducing indirect tax in the meantime of imposing carbon tax will help to reduce the negative impact of the tax on production and competitiveness in addition giving households subsidy in the meantime will help to stimulate household consumptions therefore complementary policies used together with carbon tax will help to cushion the negative impacts of carbon tax on the economy the dynamic cge analysis shows the impact of carbon tax policy on the gdp is relatively small but the reduction of carbon emission is relatively large

a transaction data study of weekly and intradaily patterns in stock returns abstract weekly and intradaily patterns in common stock prices are examined using transaction data for large firms negative monday close to close returns accrue between the friday close and the monday open for smaller firms they accrue primarily during the monday trading day for all firms significant weekday differences in intraday returns accrue during the first 45 minutes after the market opens on monday mornings prices drop while on the other weekday mornings they rise otherwise the pattern of intraday returns is similar on all weekdays most notable is an increase in prices on the last trade of the day

environmental corporate social responsibility and financial performance disentangling direct and indirect effects abstract this paper assesses the impact of environmental corporate social responsibility ecsr on corporate financial performance cfp measured by roa and tobin s q we show that the relationship between firms return on assets roa and ecsr strengths and concerns is negative and statistically significant we also show that firms tobin q and ecsr strengths and concerns are negatively correlated in a statistically significant way however accounting for the interaction between firms environmental efforts and r d yields a different perspective while the direct impact of ecsr on cfp is still negative the interaction of ecsr and r d has a positive and significant impact on it ecsr strengths and concerns harm cfp since they are perceived as a potential cost however this csr activity fosters r d efforts of firms which generates additional value indirect effect

carbon control policies competitiveness and border tax adjustments abstract several propositions have recently been made to use border tax adjustments btas to address the loss of competitiveness induced by unilateral stringent domestic pollution control policies this paper explores in a general equilibrium framework the sectoral and welfare implications of a unilateral domestic ghg control policy combined with a bta scheme using the canadian economy as an illustration we assess the extent to which btas achieve their objectives and analyze the impacts of different methods of recycling the bta proceeds to support domestic industries our simulation results suggest that imposing btas on the imports of non fossil and energy intensive products reduces or removes completely the negative competitiveness impacts that domestic industries suffer from the use of the proceeds of the btas to support domestic energy intensive industries improves their competitiveness and more importantly in some cases overprotects them as it allows them to even increase their output in comparison to the benchmark without emissions control our results also shed light on the existence of heterogeneity in the composition of energy intensive industries as far as the recycling method of the bta proceeds is concerned energy intensive industries that are more oriented toward the domestic market are better off with the recycling of the bta proceeds towards gross output than towards exports alone finally abstracting from the environmental benefits of reduced emissions we find that a bta entails a higher welfare cost to households

international diversification and firm performance the s curve hypothesis a proposed theoretical framework for the study of multinationality and performance includes both benefits and costs of geographic expansion over different phases of internationalization data on 1 489 japanese firms over 12 years show a consistent horizontal x s shaped x relationship between multinationality and performance further firms investing more heavily in intangible assets such as technology and advertising achieved greater profitability gains from growth in foreign direct investment our framework and findings highlight complexity and temporal dynamics

emerging carbon constraints for corporate risk management abstract while discussions about global sustainability challenges abound the financial risks that they incur albeit important have received less attention we suggest that corporate risk assessments should include sustainability related aspects especially with relation to the natural environment and encompass the flux of critical materials within a company s value chain such a comprehensive risk assessment takes into account input as well as output related factors with this paper we focus on the flux of carbon and define carbon constraints that emerge due to the disposition of fossil fuels in the input dimension and due to direct and indirect climate change effects in the output dimension we review the literature regarding the financial consequences of carbon constraints on the macroeconomic sector and company level we conclude that a financial consequences seem to be asymmetrically distributed between and within sectors b the individual risk exposure of companies depends on the intensity of and dependency on carbon based materials and energy and c financial markets have only started to incorporate these aspects in their valuations this paper ends with recommendations on how to incorporate our results in an integrated carbon risk management framework

weekend effects on stock returns a note some researchers have apparently been surprised to discover that the distribution of stock returns depends on the day of the week kenneth french 3 for example in testing whether daily stock returns are generated by a trading time or calendar time hypothesis provided convincing evidence of a negative market return on mondays as french carefully notes this finding runs counter to both hypotheses since a trading time view would have expected stock returns equal on different days and a calendar time view would have higher expected returns on monday to compensate for the longer holding period in this paper we offer a partial explanation for the apparently puzzling discovery of different daily returns we argue that the expected stock returns as measured for example from closing to closing prices should depend on the day of the week in general we argue that the expected returns on mondays should be lower than would be implied simply by a trading time or calendar time model and the returns on fridays should be higher in addition we anticipate that holidays will have complex effects on stock returns on other days of the week our argument is based on the delay between trading and settlements in stocks and in clearing checks the explanation that we offer for different measured daily returns does not contradict the efficient market hypothesis as correctly adjusted expected returns should not differ according to the day of the week

carbon taxes with exemptions in an open economy a general equilibrium analysis of the german tax initiative abstract sectoral exemptions from environmental regulation are applied in many countries to avoid adverse adjustment effects in specific industries the problem with exemptions is that they can make environmental policy more costly our paper analyzes the welfare costs of exemptions in environmental policy together with the issue of unilateral carbon taxes in an open economy several countries within the eu have introduced or contemplated unilateral taxes to reduce anthropogenic co2emissions taxes which are unilaterally imposed in an open economy can have significant impacts on production and employment of energy and export intensive industries to save jobs by maintaining international competitiveness most co2taxation schemes include exemptions for energy and export intensive industries as a compromise between environmental objectives and employment in these sectors this paper shows that such compromises are costly as the tax base narrows the dead weight loss increases our calculations illustrate this point in the framework of a static general equilibrium model for west germany calibrated to 1990 data we evaluate the excess costs of exemptions as a means of saving jobs in specific industries relative to an alternative instrument a uniform carbon tax cum wage subsidy which achieves an identical level of national emissions and employment at a fraction of the cost

losing sleep at the market the daylight saving anomaly reply motivated by the recent flurry of activity in sleep research this paper explores the connection between sleep disruptions following spring and fall clock shifts associated with daylight savings time and equity returns it is shown that the weekend effect in the form of the lower than expected friday to monday returns is particularly pronounced for the two weekends involving daylight savings clock changes this abstract was borrowed from another version of this item

the corporate social performance financial performance link strategic managers are consistently faced with the decision of how to allocate scarce corporate resources in an environment that is placing more and more pressures on them recent scholarship in strategic management suggests that many of these pressures come directly from sources associated with social issues in management rather than traditional arenas of strategic management using a greatly improved source of data on corporate social performance this paper reports the results of a rigorous study of the empirical linkages between financial and social performance corporate social performance csp is found to be positively associated with prior financial performance supporting the theory that slack resource availability and csp are positively related csp is also found to be positively associated with future financial performance supporting the theory that good management and csp are positively related 1997 by john wiley sons ltd