Stock Price Responses to the Eco-Points Programme for Electrical Household Appliances: Evidence from Japan

16 Pages Posted: 7 Apr 2016

See all articles by Hanae Tamechika

Hanae Tamechika

Graduate School of Economics, Nagoya City University

Shin'ya Okuda

Nagoya City University

Date Written: March 15, 2016

Abstract

This paper examines the Japanese government’s ‘Project for Green Consumer Electronics to Promote Business through the Use of Eco-points’ and its economic impact on consumer electronics firms’ stock prices. In order to achieve our aim, we employ event study methodology. Our results show that stock prices responded positively to programme adoption, thereby indicating that the programme had positive effects on the related firms’ performance. The results also show that the programme’s economic effects gradually decreased over each subsequent programme extension. This probably occurred because the programme targeted durable goods, which consumers do not replace frequently.

Keywords: event study; environmental stimulus policy; capital market

JEL Classification: G14, H30, Q58

Suggested Citation

Tamechika, Hanae and Okuda, Shin'ya, Stock Price Responses to the Eco-Points Programme for Electrical Household Appliances: Evidence from Japan (March 15, 2016). Available at SSRN: https://ssrn.com/abstract=2759686 or http://dx.doi.org/10.2139/ssrn.2759686

Hanae Tamechika (Contact Author)

Graduate School of Economics, Nagoya City University ( email )

Japan

Shin'ya Okuda

Nagoya City University ( email )

Japan

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