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The impact of Americans with Disabilities Act (ADA) events on firm value

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  • Steven Crawford
  • Bryan Johnson
  • John R. Wingender

Abstract

To date, no research has examined the impact of events related to the Americans with Disabilities Act (ADA) on the value of firms with publicly traded equity, despite the importance of this legislation to the economic and legal environments of business. To examine the impact of the ADA on firm valuation, we analyse ADA-related media events associated with publicly traded firms. We find that the effects of ADA-related events are concentrated in the retail industry, where firms interact more frequently with the public. We find some evidence that positive events result in positive cumulative abnormal returns, but we do not find corresponding returns for negative events. Furthermore, we show that returns accrue to firms with positive ADA events, irrespective of firm size.

Suggested Citation

  • Steven Crawford & Bryan Johnson & John R. Wingender, 2015. "The impact of Americans with Disabilities Act (ADA) events on firm value," Applied Economics Letters, Taylor & Francis Journals, vol. 22(14), pages 1154-1157, September.
    • Handle: RePEc:taf:apeclt:v:22:y:2015:i:14:p:1154-1157
    DOI: 10.1080/13504851.2015.1011305
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    References listed on IDEAS

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    1. Thomas DeLeire, 2000. "The Wage and Employment Effects of the Americans with Disabilities Act," Journal of Human Resources, University of Wisconsin Press, vol. 35(4), pages 693-715.
    2. Carhart, Mark M, 1997. "On Persistence in Mutual Fund Performance," Journal of Finance, American Finance Association, vol. 52(1), pages 57-82, March.
    3. Brown, Stephen J. & Warner, Jerold B., 1985. "Using daily stock returns : The case of event studies," Journal of Financial Economics, Elsevier, vol. 14(1), pages 3-31, March.
    4. Fama, Eugene F. & French, Kenneth R., 1993. "Common risk factors in the returns on stocks and bonds," Journal of Financial Economics, Elsevier, vol. 33(1), pages 3-56, February.
    5. Julie L. Hotchkiss, 2004. "A Closer Look at the Employment Impact of the Americans with Disabilities Act," Journal of Human Resources, University of Wisconsin Press, vol. 39(4).
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    1. Thai-Ha Le & Donghyun Park & Cong-Phu-Khanh Tran & Binh Tran-Nam, 2018. "The Impact of the Hai Yang Shi You 981 Event on Vietnam’s Stock Markets," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 17(3_suppl), pages 344-375, December.

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