Corporate environmental initiatives and anticipated firm performances: Thedifferential effects of process-driven versus product-driven greening initiatives

We investigate the influence of environmental initiatives on firms' anticip ated economic performance using an event study methodology. Framing our arg uments within an organizational reputation framework, we propose that, due to potential positive effects of these initiatives on Jinn performance (thr ough increases in reputation), shareholders will react positively to announ ced environmental initiatives. Contrary to our hypothesis, we found no over all effect of announced environmental initiatives on stock returns. However , our findings indicate that reactions to product-driven initiatives are si gnificantly different than reactions to process-driven ones. (C) 2000 Elsev ier Science Inc. All rights reserved.