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.
All Science Journal Classification (ASJC) codes
- Economics and Econometrics