Economic sustainable development and capital market perception

This dissertation examines with three independent studies the impact of regulatory changes or potential self-regulation on stock returns and equity risk of affected companies. The focus is therefore laid on the the (renewable) energy sector and on the financial industry. Based on the event study methodology and the estimation of a rolling beta factor (CAPM), the results provide evidence that capital markets react on appropriate announcements with respect to their corporate valuation and their perception of risk. In addition, it can be shown that positive announcements lead to a positive effect while negative events cause a value depreciation. Based on the findings of the three studies it can be concluded that the analysis of regulatory changes requires a combined consideration of risk and return effects. Otherwise the results for the impact on a whole are dealt with inadequately.