Narcissism, political tenure, financial indicators and the effectiveness of environmental regulation. Issue 21 (3rd May 2018)

• Record Type: Journal Article
• Authors: Yang, Minhua; Ramiah, Vikash; Moosa, Imad; He, Yu
• Is Part Of: Applied economics. Volume 50:Issue 21(2018)
• Page Start: 2325
• Page End: 2338
• Publication Date: 2018-05-03
• Subjects: Environmental regulation -- green effects -- narcissism -- effectiveness scores -- environmental finance; G14 -- G18; Economics -- Periodicals; 330
• DOI: 10.1080/00036846.2017.1394977
• Languages: English
• ISSNs: 0003-6846

Abstract

ABSTRACT: This article explores the factors that determine the effectiveness of environmental regulation in the United States and Australia. Unlike prior literature, in which lagging performance measures (such as carbon emissions) are used, we use financial data to develop effectiveness scores and identify the determinants of effectiveness, including narcissistic behaviour, tenure of political leaders and financial indicators. Consistent with the emerging literature on environmental finance, we find that abnormal returns are associated with environmental regulation and that effectiveness is adversely affected when narcissistic leaders are in power. Our results remain robust when we control for various event windows and models.