Date of Award

5-2013

Document Type

Honors Thesis

Degree Name

Bachelor of Arts

Department

Accounting

Advisor/Committee Chair

Raymond K. Van Ness

Abstract

Concern for the environment has been freely expressed by many individuals across the globe. Research has shown that customers, employees, and stockholders are more trustworthy of a company that practices socially responsible behavior. This paper will examine whether investors will prefer to invest in a company that has committed itself to reducing its environment footprint over a company that has done little or nothing to reduce its environmental impact. This will be done by comparing and contrasting the beta coefficients, share price movement, and the price to earnings ratio of two companies that differ in their attitude towards the environment. It was discovered that the green company had a beta less than the market, a higher price to earnings ratio, and a higher change in its stock price.

Included in

Accounting Commons

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