Can capital markets respond to environmental policy of firms? Evidence from Greece, Ecological Economics, 63: 578-587 (JEL, ISI Listed, Impact Factor: 2,855 and 5-year 3,732). 2007. In common with A. Sepetis

In this study we attempt to evaluate the stock value of Greek firms, which apply systems of environmental management in the light of systemic risk. Risk is examined empirically with the help of conditional volatility models of investment in environmental friendly firms. The empirical analysis relies on financial econometric models, which determine the underlying conditional volatility. We find that improved environmental management system and environmental performance result in reductions in firms’ beta.