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Impact of Environmental Disaster Movies on Corporate Environmental and Financial Performance

Author

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  • Henry Hyun-Do Kim

    (College of Business, Korea Advanced Institute of Science and Technology (KAIST), Seoul 02455, Korea)

  • Kwangwoo Park

    (College of Business, Korea Advanced Institute of Science and Technology (KAIST), Seoul 02455, Korea)

Abstract

Using a unique United States box office data set, we investigate the impact of environmental sentiment on corporate environmental and financial performance of the United States listed firms. The influence of mass media on public and investor sentiments is well documented in the existing literature. However, little is known about the effect of movies, although they may influence the public more than other mass media because people, regardless of age and gender, enjoy watching movies. Using the event study methodology and multivariable regression analysis, we show that the release of anthropogenic environmental disaster movie(s) creates environmental sentiment and influences corporate behaviors. Specifically, firms significantly increase their environmental performance in the subsequent year of strong environmental sentiment after the release of environmental movies. More importantly, the positive effect of corporate environmental performance on financial performance is stronger when the environmental sentiment is stronger.

Suggested Citation

  • Henry Hyun-Do Kim & Kwangwoo Park, 2021. "Impact of Environmental Disaster Movies on Corporate Environmental and Financial Performance," Sustainability, MDPI, vol. 13(2), pages 1-35, January.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:2:p:559-:d:477197
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    References listed on IDEAS

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    Cited by:

    1. Thiago Christiano Silva & Fabiano José Muniz & Benjamin Miranda Tabak, 2023. "The Impact of Government Disaster Surveillance and Alerts on Local Economic and Financial Conditions," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 84(2), pages 559-591, February.
    2. Nerea Alejandra Ramírez-Castillo & Jéssica Müller-Pérez & Ángel Acevedo-Duque & Sheyla Müller-Pérez & Romel Ramón González-Díaz & Jorge Suarez Campos & Luiz Vicente Ovalles-Toledo, 2021. "Sustainable Moviegoer Intention to Attend Cinemas Based on the Theory of Planned Behavior," Sustainability, MDPI, vol. 13(16), pages 1-20, August.
    3. Stephen P. Ferris & Sulgi Koo & Kwangwoo Park & David T. Yi, 2022. "The Effects of Hosting Mega Sporting Events on Local Stock Markets and Sustainable Growth," Sustainability, MDPI, vol. 15(1), pages 1-15, December.

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