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Stock price responses on the German suspension of genetically modified maize

Author

Listed:
  • Robert Finger

    (Agri-food & Agri-environmental Economics Group, ETH Zürich, Switzerland)

Abstract

This note investigates the effect of the German governments' decision to suspend the cultivation of genetically modified maize on the stock returns of involved companies. Moreover, the first announcement to investigate a ban as well as a court decision rejecting Monsanto's lawsuit against the suspension are considered. This study is motivated by the expectation that these decisions have consequences beyond the small German market for genetically modified maize. An event study is used to evaluate the economic impacts on stock returns of Monsanto, Bayer and BASF. We find slight evidence that stock prices of Monsanto and BASF responded negatively to the German suspension of genetically modified maize.

Suggested Citation

  • Robert Finger, 2010. "Stock price responses on the German suspension of genetically modified maize," Economics Bulletin, AccessEcon, vol. 30(3), pages 2220-2229.
    • Handle: RePEc:ebl:ecbull:eb-10-00257
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2010/Volume30/EB-10-V30-I3-P204.pdf
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    References listed on IDEAS

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    1. repec:ebl:ecbull:v:13:y:2006:i:6:p:1-4 is not listed on IDEAS
    2. Fumiko Takeda & Takanori Tomozawa, 2006. "An Empirical Study on Stock Price Responses to the Release of the Environmental Management Ranking in Japan," Economics Bulletin, AccessEcon, vol. 13(6), pages 1-4.
    3. Michael Leeds, 2010. "Is bad news always bad? The impact of Floyd Landis's rise and fall on Phonak," Applied Economics Letters, Taylor & Francis Journals, vol. 17(8), pages 805-808.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Robert Finger & Nadja El Benni & Timo Kaphengst & Clive Evans & Sophie Herbert & Bernard Lehmann & Stephen Morse & Nataliya Stupak, 2011. "A Meta Analysis on Farm-Level Costs and Benefits of GM Crops," Sustainability, MDPI, vol. 3(5), pages 1-20, May.

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    More about this item

    Keywords

    Event study; Bt maize; Monsanto; Bayer; BASF; GM crops;
    All these keywords.

    JEL classification:

    • G0 - Financial Economics - - General
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General

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