Corporate Environmental Responsibility and the Cost of Capital: International Evidence
We examine how corporate environmental responsibility (CER) affects the cost of equity capital for manufacturing firms in 30 countries. Using several approaches to estimate firms’ ex ante equity financing costs, we find in regressions that control for firm-level characteristics as well as industry,...
| Auteurs: | ; ; ; |
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| Type de support: | Électronique Article |
| Langue: | Anglais |
| Vérifier la disponibilité: | HBZ Gateway |
| Journals Online & Print: | En cours de chargement...
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| Fernleihe: | Fernleihe für die Fachinformationsdienste |
| Publié: |
Springer Science + Business Media B. V
2018
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| Dans: |
Journal of business ethics
Année: 2018, Volume: 149, Numéro: 2, Pages: 335-361 |
| Sujets non-standardisés: | B
M14
B Firm risk B Environmental risk management B G32 B Corporate environmental responsibility B Environmental liability risk B Cost of equity capital |
| Accès en ligne: |
Volltext (lizenzpflichtig) |
| Résumé: | We examine how corporate environmental responsibility (CER) affects the cost of equity capital for manufacturing firms in 30 countries. Using several approaches to estimate firms’ ex ante equity financing costs, we find in regressions that control for firm-level characteristics as well as industry, year, and country effects that the cost of equity capital is lower when firms have higher CER. This finding is robust to addressing endogeneity through instrumental variables, to using alternative specifications and proxies for the cost of equity capital, and to accounting for noise in analyst forecasts. We conclude that investment in CER reduces firms’ equity financing costs worldwide. |
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| ISSN: | 1573-0697 |
| Contient: | Enthalten in: Journal of business ethics
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| Persistent identifiers: | DOI: 10.1007/s10551-015-3005-6 |