The Impact Of Environmental Policies On The Stock Prices Of Energy Listed Companies

Environmental regulation as the main government tools to constraint corporate behavior and guide enterprises to protect environment, and it will also affect the market investors of listed companies. Their attitude will react the environmental policies, and its implementation. On the one hand, companies are the major players in the market, the implementation of environmental policies mainly rely on their execution, it s the key to achieve the sustainable development goal. On the other hand, market investors are always concerned about the influence from environmental policies on the development of the business, such as corporate costs, market competitiveness of products, corporate profit, whose views will be reflected by the abnormal changes in stock price. If we know their attitudes towards environmental policies better, it is benefits for the development and implementation of environmental policies. Therefore, this study based on environmental regulation theory and behavioral finance theory, using event study method and the GARCH model to analyze the impact of environmental policies on energy regulation of listed companies and their stock price volatility in short term and long term.The main conclusions are:(1) environmental regulations had a significant and negative impact on stock price of energy listed companies in the short term; and market inspiring regulation is positive, but the command-control type is negative in long term. (2) In short term, environmental regulations have a positive influence on power corporations, while they have a negative influence on the coal and oil corporations; (3) the corporations have a higher disclosure level influenced by environmental regulations seriously and negatively, while the other corporations decreased to a lesser extent; (4) environmental regulations have a little influence on corporations from western region than the corporations from eastern and medium;(5) environmental regulations have a significant and negative influence on the corporations market capitalization more than 10 billion yuan, but the market capitalization between 5 and 10 billion are. (6) In the long term, the market-based environmental policy have a positive influence on energy companies stock prices and the administrative and legislative type policies caused the stock price down, and market-based policies have advantages for enterprises to choose lower-cost, more beneficial environmental strategy in long term, and enhance corporate market value.