Show simple item record

dc.contributor.authorWood, Lincoln
dc.contributor.authorWang, J.
dc.contributor.authorDuong, L.
dc.contributor.authorReiners, Torsten
dc.contributor.authorSmith, R.
dc.date.accessioned2018-08-08T04:42:17Z
dc.date.available2018-08-08T04:42:17Z
dc.date.created2018-08-08T03:50:33Z
dc.date.issued2018
dc.identifier.citationWood, L. and Wang, J. and Duong, L. and Reiners, T. and Smith, R. 2018. Stock Market Reactions to Auto Manufacturers’ Environmental Failures. Journal of Macromarketing. 38 (4): pp. 364-382.
dc.identifier.urihttp://hdl.handle.net/20.500.11937/69770
dc.identifier.doi10.1177/0276146718781915
dc.description.abstract

The automotive sector must meet strict regulations to increase mobility while reducing emissions to demonstrate environmental stewardship. Trust in the promise of a sustainable Fahrvergnügen was broken with recent scandals like Dieselgate denting the confidence of regulators and consumers. Overpromising on sustainable innovative technology resulted in unethical behavior, deceit, and failure to meet promised standards. We consider to what extent societal disapproval was evident in the stock market reaction to these events. We sampled 41 announcements (1984 to 2016) and observed a mean stock market reaction of -1.01%. There was no difference in the stock reaction in firms failing governmental vs. voluntary standards and more negative reactions for events following Dieselgate or when compensation was offered. The severity of the reaction to unethical misuse of environmental credentials should encourage maintaining promised environmental performances as a macromarketing strategy.

dc.publisherSage Publications
dc.titleStock Market Reactions to Auto Manufacturers’ Environmental Failures
dc.typeJournal Article
dcterms.source.issn0276-1467
dcterms.source.titleJournal of Macromarketing
curtin.note

Wood, L. and Wang, J. and Duong, L. and Reiners, T. and Smith, R. 2018. Stock Market Reactions to Auto Manufacturers’ Environmental Failures. Journal of Macromarketing. Copyright © The Author(s) 2018. Reprinted by permission of SAGE Publications

curtin.departmentSchool of Management
curtin.accessStatusOpen access


Files in this item

Thumbnail

This item appears in the following Collection(s)

Show simple item record