Cattle Production Analysis Using a Steady State Model

We use event study analysis to determine whether the release of Newsweek's "Global 100Ranking" is relevant for the market. We look at one- and two-day event windows to check twopossible reactions of the market: changes in the value of a portfolio consisting of one unit of thestock of each listed company, and changes in the relative price of the stocks. The results showthat the market reacted to the "Global 100 Ranking" by changing the relative price of the stocksbut not the value of the portfolio. Specifically, getting one position closer to the top ofNewsweek's "Global 100 Green Rankings" increases the value of an average firm in the list byone billion dollar. There is also some evidence of a stronger reaction of non-U.S. traded stockscompared to U.S. traded ones. Non-heavy sectors display a more robust reaction to than heavysectors. Results are very robust to different model specifications.