{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2025,8,2]],"date-time":"2025-08-02T17:26:31Z","timestamp":1754155591629,"version":"3.41.2"},"reference-count":48,"publisher":"Emerald","issue":"6","license":[{"start":{"date-parts":[[2014,6,3]],"date-time":"2014-06-03T00:00:00Z","timestamp":1401753600000},"content-version":"tdm","delay-in-days":0,"URL":"https:\/\/www.emerald.com\/insight\/site-policies"}],"content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":[],"published-print":{"date-parts":[[2014,6,3]]},"abstract":"<jats:sec><jats:title content-type=\"abstract-heading\">Purpose<\/jats:title><jats:p>\u2013 The purpose of this paper is to investigate the effect of ISO 14001 certification on US public firms\u2019 equity structure regarding whether the typical heavy investment required for environmental management system is justified in terms of equity risk.<\/jats:p><\/jats:sec><jats:sec><jats:title content-type=\"abstract-heading\">Design\/methodology\/approach<\/jats:title><jats:p>\u2013 This study employs the event study methodology and examines the pre- and post-movements of firms\u2019 equity structure around the ISO 14001 certification date. This study investigated 5,189 listed firms in the New York Stock Exchange and National Association of Securities Dealers Automated Quotation and the abnormal performance of firms\u2019 equity structure was measured by using four dependent variables (assets, liabilities, debt ratio (liabilities\/equity), and market-to-book ratio of equity).<\/jats:p><\/jats:sec><jats:sec><jats:title content-type=\"abstract-heading\">Findings<\/jats:title><jats:p>\u2013 The results showed that the adoption of ISO 14001 increased a firm's total assets, liabilities, and debt ratio in the long run, implying that pursuing the certification entails the increase in a firm's size and equity risk. The long-term movement of the market-to-book ratio of equity showed no abnormal performance, while it fluctuated in the short term.<\/jats:p><\/jats:sec><jats:sec><jats:title content-type=\"abstract-heading\">Practical implications<\/jats:title><jats:p>\u2013 This study suggests that managers should consider the potential risk from a firm's equity structure when they decide to pursue the ISO 14001 certification.<\/jats:p><\/jats:sec><jats:sec><jats:title content-type=\"abstract-heading\">Originality\/value<\/jats:title><jats:p>\u2013 This study is the first effort to investigate the long-term effect of ISO 14001 certification on the firm's equity structure using the event study methodology in the USA.<\/jats:p><\/jats:sec>","DOI":"10.1108\/imds-01-2014-0021","type":"journal-article","created":{"date-parts":[[2014,7,10]],"date-time":"2014-07-10T20:10:51Z","timestamp":1405023051000},"page":"979-991","source":"Crossref","is-referenced-by-count":7,"title":["The effect of ISO 14001 on equity structure"],"prefix":"10.1108","volume":"114","author":[{"given":"Sang","family":"M. 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