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Abstract
Few studies to date have addressed the relationship between the food industry’s environmental
and financial performances although the industry is one of the biggest contributors of
greenhouse gas emissions.We analyze the impact of environmental news about selected food
companies on their stock prices. Results show that positive (negative) events that are the
result of direct internal company actions lead to higher (lower) predicted returns, whereas
events related to third-party opinions lead to smaller changes in predicted returns in short
event windows. This study highlights the importance of conducting the analysis on a disaggregated
basis by incorporating firm-level variables.