The Empirical Analysis Of The Air Pollution's Effect On Listed Companies' Stock Price

In recent years,the frequent occurring of haze caused people's attention on air pollution.In the past research,although the air pollution's effect on human health and the relationship between air pollution and economic growth is more discussed and analyzed,there is few empirical analysis of air pollution's effect on virtual economy.With the reference to stock price of listed companies and daily data about air pollution index of major cities during the period from 1st January,2010 to 31th December,2013,this paper makes empirical analysis of air pollution's effect on stock price of listed companies in China by adopting two way fixed effects model.On one hand,the research helps do more scientifical assessment for damages caused by air pollution on social economic development,understand air pollution better from an external view and provide a new approach for studying pricing air pollution.On the other hand,it benefits the comprehension of factors influencing China's stock market fluctuation and offers certain argument support on the study of investors behavior and supervision of financial market.The innovation of this paper is in the combination of air pollution and stock market in virtual economy,adding the explanatory variable,air pollution index,to past research of stock market,so that the observation of factors influencing stock market fluctuation is more comprehensive.The experiment result shows that in general,the correlation between air pollution and listed companies 'stock price is obviously negative and different conclusions are drawn according to regression analysis of subsamples in different industries.The correlation between air pollution and the stock price of listed companies is also negative in real estate industry,paper-making industry,motor industry,paper production industry,resulting from the joint action of negative emotion and negative expectation;the correlation is not obvious in ecological protection industry and environmental management industry,resulting from the joint action of negative emotion and negative expectation.And the emotion effect is more stronger than the expectation effect.