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Research article - Peer-reviewed, 2019

The cost of transparency: Stock market reactions to introduction of the Extractive Sector Transparency Measures Act in Canada

Linder, Eric; Marbuah, George

Abstract

This paper examines stock market reactions of affected firms to the introduction of the Extractive Sector Transparency Measures Act, ESTMA. Using publicly available stock returns data on Canadian listed mining firms and oil and gas producers, an event study is employed to assess how the stock market reacted to the key events in leading up to the enactment of the Act. ESTMA mandates extractive firms listed on Canadian stock exchange to disclose payments made to governments regarding exploration of oil, natural gas, and minerals. The evidence suggests no systematic negative impact on affected firms' stock returns surrounding the analysed events.

Keywords

Financial transparency; Mandatory disclosure requirements; Extractive sector transparency measures act

Published in

Resources Policy
2019, Volume: 63, article number: 101463
Publisher: ELSEVIER SCI LTD

    UKÄ Subject classification

    Economics

    Publication identifier

    DOI: https://doi.org/10.1016/j.resourpol.2019.101463

    Permanent link to this page (URI)

    https://res.slu.se/id/publ/102282