Abstract:
Regarding the impact of air quality on stock yield, the present studies focus mainly on the whole stock market which is contrary to the limited concern hypothesis and deviates from the investment facts.This paper not only focuses on the differences of air quality impacts on high and low air pollution industries based on the limited concern theory but also concerns the heterogeneity of stock in different areas under the same air pollution degree.The results show that there is a significant negative correlation between the stock yield and AQI in high air pollution industry.The stock yield of northern companies can be affected greatly by AQI than the southern companies on the basis of unchanged pollution degree.What’s more, it draws the same conclusion based on the Logit model from the perspective of market quotation.In summary, this paper verifies the limited concern theory from pollution degree and geographical location, the conclusion can be used as a reference for enterprise site selection and government investment attraction.
