Skip to main content
Fachgebiete
Automobil + Motoren Bauwesen + Immobilien Business IT + Informatik Elektrotechnik + Elektronik Energie + Nachhaltigkeit Finance + Banking Management + Führung Marketing + Vertrieb Maschinenbau + Werkstoffe Versicherung + Risiko
DE
EN
Themenseiten
Organisationspsychologie Projektmanagement Marketing Smart Manufacturing
Bücher
Zeitschriften
Weitere Formate
Podcasts Webinare Technik Webinare Wirtschaft Kongresse Veranstaltungskalender Awards
Jetzt Einzelzugang starten
Zugang für Unternehmen
Referenzkunden
MTZ-Fachkongress

Antriebe und Energiesysteme von morgen


Austausch von Automobil- und Energiewirtschaft

Am 14./15. Mai geht es in Chemnitz um die Mobilitätswende durch Elektro- und Wasserstofffahrzeuge.
Erweiterte Suche
Anmelden
nach oben
Journal of Business Ethics
Erschienen in: Journal of Business Ethics 4/2023

03.01.2022 | Original Paper

Does CEO Risk-Aversion Affect Carbon Emission?

verfasst von: Ashrafee Hossain, Samir Saadi, Abu S. Amin

Erschienen in: Journal of Business Ethics | Ausgabe 4/2023

Einloggen

Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.

search-config
loading …

Abstract

Does CEO tolerance to risk affect a firm’s long-run sustainability? Using CEO insider debt holding, we show that CEO’s risk-aversion encourages immoral yet rational decisions of emitting more greenhouse gas thereby adversely affecting the firm’s long-run sustainability. Our result is robust to several endogeneity tests including a quasi-natural experiment. Our finding also suggest that to mitigate potential adverse reactions from stakeholders, carbon emitting firms with risk-averse CEOs tend to spend more on CSR activities. Much of the heterogeneity in our results are attributed to companies with weaker governance, powerful CEOs, and operating in a competitive product market. Overall, contrary to conventional wisdom, CEO preference toward risk-aversion can often lead to unethical outcomes (environmental degradation) and especially appears to be a key determinant for firm-level carbon emissions.
Vorheriger Artikel Mobilizing After Corporate Environmental Irresponsibility in a Community of Place: A Framing Microprocess Perspective

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

  • über 102.000 Bücher
  • über 537 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Maschinenbau + Werkstoffe
  • Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

  • über 67.000 Bücher
  • über 340 Zeitschriften

aus folgenden Fachgebieten:

  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Versicherung + Risiko




Jetzt Wissensvorsprung sichern!

Jetzt informieren
Anhänge
Nur mit Berechtigung zugänglich
Fußnoten
1
According to the US Environmental Protection Agency (EPA), 76% of greenhouse gas emissions come from CO2 (https://​www.​epa.​gov/​ghgemissions/​global-greenhouse-gas-emissions-data).
 
2
For instance, the mounting pressure from pension funds, one of the strongest institutional ownership blocks, is gradually forcing corporations to reduce GHG emissions in the future. Four pension funds—APG Asset Management and PGGM (both from the Netherlands), British Columbia Investment Management Corporation (Canada), and Australian Super (Australia)—with a total asset under management of $1 trillion, have initiated an online tool that will gauge corporate green scores against the UN sustainable development goals for 8000 companies.
 
3
For instance, Jung et al. (2018) and Herbohn et al. (2019) find that GHG-emitting firms pay the higher cost of debt, while Matsumura et al. (2014) show that every additional thousand metric tons of carbon emissions causes an average decrease of $212,000 of the market value of US carbon-emitting firms.
 
4
At the macro-level, many climate scientists have been urging countries worldwide, and in particularly developed ones, to reach net-zero greenhouse gas emissions by 2050 (e.g., Millar et al., 2017). However, of the 184 signatory countries to the Paris Agreement, only 12% are capable of meeting the milestone of reducing GHG emissions by 50% in 2030 (Burki et al., 2021).
 
5
See, for instance, Wang et al. (2010), Chava et al. (2010), Tung and Wang (2012), Cassell et al. (2012), Belkhir and Boubaker (2013), Anantharaman et al. (2014), Phan (2014), Bolton et al. (2015), Eisdorfer et al. (2015),Boubaker et al. (2020), Bhabra et al., (2021).
 
6
See Garriga and Melé (2004) for a review of the theoretical literature on CSR. See Malik (2015) for a review of the empirical literature on CSR.
 
8
That includes a lower cost of equity (Dhaliwal et al., 2011; El Ghoul et al., 2011 and 2018), a lower cost of debt (Goss and Roberts 2011), improved access to financial capital (Attig et al., 2014), a better market valuation (Bae et al., 2019; Boubakri et al., 2016), easier access to credit (Cheng et al., 2014), a better credit rating (Attig et al., 2013), better governance (Attig et al., 2016; El Ghoul et al., 2016 & 2019), a lower risk of a stock price crash (Kim et al., 2014), more corporate innovation (Chkir et al., 2021), an enhanced reputation (Cui et al., 2018), a better performance in the post-merger period (Deng et al., 2013), and better relationships with the policymakers (Brown et al., 2006).
 
9
We would like to thank Lalitha Naveen for sharing the data.
 
10
To mitigate the concern with the multicollinearity problem, we also check the variance inflation factor (VIF) of the variables included in the analysis. We find that the highest VIF is 2.56 for Tangibility, followed by 2.30 for Capex. The rest of the VIFs are below 1.93. The average is 1.54. These VIFs indicate that multicollinearity is not a concern for our analysis.
 
11
This high vs. low split is in the same spirit as the theoretical studies by Jensen and Meckling (1976) and Edmans and Liu (2011) in that these authors report that the alignment of the capital structure of the CEO and the firm is the key.
 
12
We thank an anonymous reviewer for suggesting these tests.
 
13
The IRS noted that “Effective as of 2009, all plans must be in compliance with the final regulations, both in form and operation.” See http://​www.​irs.​gov/​businesses/​corporations/​nonqualified-deferred-compensation-audit-techniques-guide .
 
14
Following Shen and Zhang (2020), we use a match within a caliper of 1%.
 
15
We thank an anonymous reviewer for motivating us to undertake this test.
 
16
It could be argued that how we execute the cross-sectional splits may suffer from objective judgment. Therefore, we undertake additional robustness measures. All cross-sectional tests undertaken in this section yield qualitatively similar results when we use quartile- or tertile- or mean- or median based sample splits. We thank an anonymous referee and Greg Shailer (the editor) for guiding us through this.
 
17
Though we follow the Lins et al. (2017) methodology in calculating our CSR score, our results are qualitatively similar when using the Deng et al. (2013) method of calculating CSR scores.
 
18
Some recent studies show that higher CIDH is associated with higher CSR scores (Kim et al., 2020; Wu and Lin, 2019). Before we started to test the moderating influence of CSR on the CIDH-GHG relation, we ensured that our sample held the positive association between CIDH and CSR as found in the recent literature. In untabulated results, we find that CEORELDE is positively related to the CSR score (coefficient for CEORELDE = 0.0263; p < 0.10); the same is true when we use CEODE as a proxy for CIDH.
 
Literatur
Adam, A. M., & Schwartz, M. S. (2009). Corporate governance, ethics, and the backdating of stock options. Journal of Business Ethics, 85(1), 225–237.CrossRef
Adams, R. B., & Ferreira, D. (2007). A theory of friendly boards. The Journal of Finance, 62(1), 217–250.CrossRef
Akey, P., & Appel, I. (2021). The limits of limited liability: Evidence from industrial pollution. The Journal of Finance, 76(1), 5–55.CrossRef
Anantharaman, D., Fang, V. W., & Gong, G. (2014). Inside debt and the design of corporate debt contracts. Management Science, 60(5), 1260–1280.CrossRef
Anton, W., Deltas, G., & Khanna, M. (2004). Incentives for environmental self-regulation and implications for toxic releases. Journal of Environmental Economics and Management, 48(1), 632–654.CrossRef
Attig, N., El Ghoul, S., Guedhami, O., & Suh, J. (2013). Corporate social responsibility and credit ratings. Journal of Business Ethics, 117(4), 679–694.CrossRef
Attig, N., Cleary, S. W., El Ghoul, S., & Guedhami, O. (2014). Corporate legitimacy and investment–cash flow sensitivity. Journal of Business Ethics, 121(2), 297–314.
Attig, N., Boubakri, N., El Ghoul, S., & Guedhami, O. (2016). Firm internationalization and corporate social responsibility. Journal of Business Ethics, 134(2), 171–197.CrossRef
Azar, J., Duro, M., Kadach, I., & Ormazabal, G. (2021). The big three and corporate carbon emission around the world. Journal of Financial Economics, forthcoming.
Bae, K. H., El Ghoul, S., Guedhami, O., Kwok, C. C., & Zheng, Y. (2019). Does corporate social responsibility reduce the costs of high leverage? Evidence from capital structure and product market interactions. Journal of Banking & Finance, 100(March), 135–150.CrossRef
Baldenius, T., Melumad, N., & Meng, X. (2014). Board composition and CEO power. Journal of Financial Economics, 112(1), 53–68.CrossRef
Barnea, A., & Rubin, A. (2010). Corporate social responsibility as a conflict between shareholders. Journal of Business Ethics, 97(1), 71–86.CrossRef
Bartram, J., Brocklehurst, C., Bradley, D., Muller, M., & Evans, B. (2018). Policy review of the means of implementation targets and indicators for the sustainable development goal for water and sanitation. NPJ Clean Water., 1(1), 1–5.CrossRef
Bebchuk, L. A., Fried, J. M., & Walker, D. I. (2002). Managerial power and rent extraction in the design of executive compensation. The University of Chicago Law Review, 69(3), 751–846.CrossRef
Bebchuk, L. A., & Fried, J. M. (2003). Executive compensation as an agency problem. Journal of Economic Perspectives, 17(3), 71–92.CrossRef
Bebchuk, L. A., & Jackson Jr, R. J. (2005). Executive pensions (No. w11907). National Bureau of Economic Research.
Bebchuk, L., Cohen, A., & Ferrell, A. (2009). What matters in corporate governance? The Review of Financial Studies, 22(2), 783–827.CrossRef
Bebchuk, L. A., Cremers, K. M., & Peyer, U. C. (2011). The CEO pay slice. Journal of Financial Economics, 102(1), 199–221.CrossRef
Beck, U. (2009). World at risk. Cambridge, UK: Cambridge: Polity Press.
Belkhir, M., & Boubaker, S. (2013). CEO inside debt and hedging decisions: Lessons from the U.S. banking industry. Journal of International Financial Markets, Institutions and Money, 24, 223–246.CrossRef
Benlemlih, M., & Bitar, M. (2018). Corporate social responsibility and investment efficiency. Journal of Business Ethics, 148(3), 647–671.CrossRef
Berrone, P., & Gomez-Mejia, L. R. (2009). Environmental performance and executive compensation: an integrated agency-institutional perspective. The Academy of Management Journal, 52(1).
Bertrand, M., & Mullainathan, S. (2001). Are CEOs rewarded for luck? The ones without principals are. The Quarterly Journal of Economics, 116(3), 901–932.CrossRef
Besio, C., & Pronzini, A. (2014). Morality, ethics, and values outside and inside organizations: An example of the discourse on climate change. Journal of Business Ethics, 119(3), 287–300.CrossRef
Bhabra, G. S., Bhabra, H. S., & Hossain, A. T. CEO inside debt and the acquisition of private targets. Accounting & Finance, forthcoming.
Bolton, P., & Kacperczyk, M. T. (2021). Do investors care about carbon risk? Journal of Financial Economics, in press.
Bolton, P., Mehran, H., & Shapiro, J. (2015). Executive compensation and risk taking. Review of Finance, 19(6), 2139–2181.CrossRef
Boiral, O., Henri, J.-F., & Talbot, D. (2012). Modeling the impacts of corporate commitment on climate change. Business Strategy and the Environment, 21(8), 495–516.CrossRef
Boubaker, S., Chebbi, K., & Grira, J. (2020). Top management insider debt and corporate social responsibility? Evidence from the US. Quarterly Review of Economics and Finance, 78(November), 98–115.CrossRef
Boubakri, N., El Ghoul, S., Wang, H., Guedhami, O., & Kwok, C. C. (2016). Cross-listing and corporate social responsibility. Journal of Corporate Finance, 41(December), 123–138.CrossRef
Branco, M. C., & Rodrigues, L. L. (2006). Corporate social responsibility and resource-based perspectives. Journal of Business Ethics, 69(2), 111–132.CrossRef
Brogaard, J., Li, D., & Xia, Y. (2017). Stock liquidity and default risk. Journal of Financial Economics, 124(3), 486–502.CrossRef
Brown, W. O., Helland, E., & Smith, J. K. (2006). Corporate philanthropic practices. Journal of Corporate Finance, 12(5), 855–877.CrossRef
Brown, J. A., & Forster, W. R. (2013). CSR and stakeholder theory: A tale of Adam Smith. Journal of Business Ethics, 112(2), 301–312.CrossRef
Cain, M. D., & McKeon, S. B. (2016). CEO personal risk-taking and corporate policies. Journal of Financial and Quantitative Analysis, 51(1), 139–164.CrossRef
Capasso, G., Gianfrate, G., & Spinelli, M. (2020). Climate change and credit risk. Journal of Cleaner Production, 121634, 266(1), in press.
Cassell, C. A., Huang, S. X., Sanchez, J. M., & Stuart, M. D. (2012). Seeking safety: The relation between CEO inside debt holdings and the riskiness of firm investment and financial policies. Journal of Financial Economics, 103(3), 588–610.CrossRef
Chakraborty, A., Sheikh, S., & Subramanian, N. (2007). Termination risk and managerial risk taking. Journal of Corporate Finance, 13(1), 170–188.CrossRef
Chapple, L., Clarkson, P. M., & Gold, D. L. (2013). The cost of carbon: Capital market effects of the proposed Emission Trading Scheme (ETS). Abacus, 49(1), 1–33.CrossRef
Chatterji, A. K., & Toffel, M. W. (2010). How firms respond to being rated. Strategic Management Journal, 31(9), 917–945.
Chava, S., Kumar, P., & Warga, A. (2010). Managerial agency and bond covenants. The Review of Financial Studies, 23(3), 1120–1148.CrossRef
Chen, L., & Gao, L. (2012). The pricing of climate risk. Journal of Financial and Economic Practice, 12(2), 115–131.
Cheng, Q., & Warfield, T. D. (2005). Equity incentives and earnings management. The Accounting Review, 80(2), 441–476.CrossRef
Cheng, B., Ioannou, I., & Serafeim, G. (2014). Corporate social responsibility and access to finance. Strategic Management Journal, 35(1), 1–23.CrossRef
Chkir, I., El Haj Hassan, B., Rjiba, H. & Saadi, S. (2021). Does corporate social responsibility influence corporate innovation? International evidence. Emerging Markets Review, 46(C).
Chi, S., Huang, S. X., & Sanchez, J. M. (2017). CEO inside debt incentives and corporate tax sheltering. Journal of Accounting Research, 55(4), 837–876.CrossRef
Cho, C. H., & Patten, D. M. (2007). The role of environmental disclosures as tools of legitimacy: A research note. Accounting, Organizations and Society, 32(7–8), 639–647.CrossRef
Cho, C. H., Patten, D. M., & Roberts, R. W. (2006). Corporate political strategy: An examination of the relation between political expenditures, environmental performance, and environmental disclosure. Journal of Business Ethics, 67(2), 139–154.CrossRef
Cohen, R. B., Hall, B. J., & Viceira, L. M. (2000). Do executive stock options encourage risk-taking. Unpublished manuscript, Harvard University.
Coles, J. L., Daniel, N. D., & Naveen, L. (2006). Managerial incentives and risk-taking. Journal of Financial Economics, 79(2), 431–468.CrossRef
Collins, D. W., & Hribar, P. (2000). Earnings-based and accrual-based market anomalies: One effect or two? Journal of Accounting and Economics, 29(1), 101–123.CrossRef
Core, J., & Guay, W. (1999). The use of equity grants to manage optimal equity incentive levels. Journal of Accounting and Economics, 28(2), 151–184.CrossRef
Core, J. E., Holthausen, R. W., & Larcker, D. F. (1999). Corporate governance, chief executive officer compensation, and firm performance. Journal of Financial Economics, 51(3), 371–406.CrossRef
Cowan, S., & Deegan, C. (2011). Corporate disclosure reactions to Australia’s first national emission reporting scheme. Accounting & Finance, 51(2), 409–436.CrossRef
Crane, A., Matten, D., & Moon, J. (2008). Ecological citizenship and the corporation: Politicizing the new corporate environmentalism. Organization & Environment, 21(4), 371–389.CrossRef
Crisp, R. (Ed.). (2014). Aristotle: Nicomachean ethics. Cambridge University Press.
Cui, J., Jo, H., & Na, H. (2018). Does corporate social responsibility affect information asymmetry? Journal of Business Ethics, 148(3), 549–572.CrossRef
Deng, X., Kang, J. K., & Low, B. S. (2013). Corporate social responsibility and stakeholder value maximization: Evidence from mergers. Journal of Financial Economics, 110(1), 87–109.CrossRef
Dhaliwal, D. S., Li, O. Z., Tsang, A., & Yang, Y. G. (2011). Voluntary nonfinancial disclosure and the cost of equity capital: The initiation of corporate social responsibility reporting. The Accounting Review, 86(1), 59–100.CrossRef
Duanmu, J.-L., Bu, M., & Pittman, R. (2018). Does market competition dampen environmental performance? Evidence from China. Strategic Management Journal, 39(11), 3006–3030.CrossRef
Eberlein, B., & Matten, D. (2009). Business responses to climate change regulation in Canada and Germany: Lessons for MNCs from emerging economies. Journal of Business Ethics, 86(2), 241–255.CrossRef
Edmans, A., & Liu, Q. (2011). Inside debt. The Review of Finance, 15(1), 75–102.CrossRef
Eisdorfer, A., Giaccotto, C., & White, R. (2015). Do corporate managers skimp on shareholders’ dividends to protect their own retirement funds? Journal of Corporate Finance, 30(February), 257–277.CrossRef
El Ghoul, S., Guedhami, O., Kwok, C. C., & Mishra, D. R. (2011). Does corporate social responsibility affect the cost of capital? Journal of Banking & Finance, 35(9), 2388–2406.CrossRef
El Ghoul, S., Guedhami, O., Wang, H., & Kwok, C. C. (2016). Family control and corporate social responsibility. Journal of Banking & Finance, 73(December), 131–146.CrossRef
El Ghoul, S., Guedhami, O., Kim, H., & Park, K. (2018). Corporate environmental responsibility and the cost of capital: International evidence. Journal of Business Ethics, 149(2), 335–361.CrossRef
El Ghoul, S., Guedhami, O., Nash, R., & Patel, A. (2019). New evidence on the role of the media in corporate social responsibility. Journal of Business Ethics, 154(4), 1051–1079.CrossRef
Ernst & Young. (2010). Action amid uncertainty: The business response to climate change, p. 28.
Fama, E. F. (1980). Agency problems and the theory of the firm. Journal of Political Economy, 88(2), 288–307.CrossRef
Favotto, A. and Kollman, K. (2015) Corporate social responsibility in an era of economic crisis: Empty gesture or tool for corporate learning? Working Paper, London School of Economics.
Fisher-Vanden, K., & Thorburn, K. S. (2011). Voluntary corporate environmental initiatives and shareholder wealth. Journal of Environmental Economics and Management, 62(3), 430–445.CrossRef
Garriga, E., & Melé, D. (2004). Corporate social responsibility theories: Mapping the territory. Journal of Business Ethics, 53(1–2), 51–71.CrossRef
Garvey, G. T., Iyer, M., & Nash, J. (2018). Carbon footprint and productivity: Does the" E" in ESG capture efficiency as well as environment? Journal of Investment Management, 16(1), 59–69.
Gaspar, J. M., & Massa, M. (2006). Idiosyncratic volatility and product market competition. The Journal of Business, 79(6), 3125–3152.CrossRef
Goetz, M. (2019). Financing conditions and toxic emission. SAFE working paper No. 254.
Goss, A., & Roberts, G. S. (2011). The impact of corporate social responsibility on the cost of bank loans. Journal of Banking & Finance, 35(7), 1794–1810.CrossRef
Göx, R. F., & Hemmer, T. (2020). On the relation between managerial power and CEO pay. Journal of Accounting and Economics, in press.
Gow, I. D., Ormazabal, G., & Taylor, D. J. (2010). Correcting for cross-sectional and time-series dependence in accounting research. The Accounting Review, 85(2), 483–512.CrossRef
Grant, J., Markarian, G., & Parbonetti, A. (2009). CEO Risk-related incentives and income smoothing. Contemporary Accounting Research, 26(4), 1029–1065.CrossRef
Haigh, N., & Griffiths, A. (2009). The natural environment as a primary stakeholder: The case of climate change. Business Strategy and the Environment, 18(6), 347–359.CrossRef
Härtel, C. E., & Pearman, G. I. (2010). Understanding and responding to the climate change issue: Towards a whole-of-science research agenda. Journal of Management and Organization, 16(1), 16–47.CrossRef
Hasan, M. M., Hossain, A. T., & Hossain, T. (2021a). CEO inside debt holdings and credit ratings. Working paper.
Herbohn, K., Gao, R., & Clarkson, P. (2019). Evidence on whether banks consider carbon risk in their lending decisions. Journal of Business Ethics, 158(1), 155–175.CrossRef
Hermalin, B. E., & Weisbach, M. S. (1998). Endogenously chosen boards of directors and their monitoring of the CEO. American Economic Review, 88(1), 96–118.
Hirshleifer, D., Low, A., & Teoh, S. H. (2012). Are overconfident CEOs better innovators? The Journal of Finance, 67(4), 1457–1498.CrossRef
Hoberg, G., Phillips, G., & Prabhala, N. (2014). Product market threats, payouts, and financial flexibility. The Journal of Finance, 69(1), 293–324.CrossRef
Hoberg, G., & Phillips, G. (2016). Text-based network industries and endogenous product differentiation. Journal of Political Economy, 124(5), 1423–1465.CrossRef
Hoffman, A. J. (2005). Climate change strategy: The business logic behind voluntary greenhouse gas reductions. California Management Review, 47(3), 21–46.CrossRef
Hoffman, A. J. (2006). Getting ahead of the curve: Corporate strategies that address climate change. Arlington, VA: The Pew Center on Global Climate Change.
Hoi, C. K. S., Wu, Q., & Zhang, H. (2019). Does social capital mitigate agency problems? Evidence from Chief Executive Officer (CEO) compensation. Journal of Financial Economics, 133(2), 498–519.CrossRef
Homroy, S., & Slechten, A. (2019). Do board expertise and networked boards affect environmental performance? Journal of Business Ethics, 158(1), 269–292.CrossRef
In, Soh Young and Park, Ki Young and Monk, Ashby (2017). Is 'Being Green' Rewarded in the Market? An Empirical Investigation of Decarbonization and Stock Returns. Stanford Global Project Center Working Paper. https://​ssrn.​com/​abstract=​3020304
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360.CrossRef
Jha, A., & Cox, J. (2015). Corporate social responsibility and social capital. Journal of Banking & Finance, 60(November), 252–270.CrossRef
Jung, J., Herbohn, K., & Clarkson, P. (2018). Carbon risk, carbon risk awareness and the cost of debt financing. Journal of Business Ethics, 150(4), 1151–1171.CrossRef
Kaplan, S. N., & Zingales, L. (1997). Do investment-cash flow sensitivities provide useful measures of financing constraints? The Quarterly Journal of Economics, 112(1), 169–215.CrossRef
Kim, T., Kim, H. D., & Park, K. (2020). CEO inside debt holdings and CSR activities. International Review of Economics & Finance, 70(November), 508–529.CrossRef
Kim, Y. B., An, H. T., & Kim, J. D. (2015). The effect of carbon risk on the cost of equity capital. Journal of Cleaner Production, 93(15), 279–287.CrossRef
Kim, Y., Li, H., & Li, S. (2014). Corporate social responsibility and stock price crash risk. Journal of Banking & Finance, 43(June), 1–13.
Kim, I., Wan, H., Wang, B., & Yang, T. (2019). Institutional investors and corporate environmental, social, and governance policies: evidence from toxics release data. Management Science, 65(10), 4901–4926.CrossRef
Kolk, A., & Pinkse, J. (2007). Multinationals’ political activities on climate change. Business & Society, 46(2), 201–228.CrossRef
Kolk, A., & Levy, D. (2001). Winds of change: Corporate strategy, climate change and oil multinationals. European Management Journal, 19(5), 501–509.CrossRef
Lemmon, M., & Roberts, M. R. (2010). The response of corporate financing and investment to changes in the supply of credit. Journal of Financial and Quantitative Analysis, 45(3), 555–587.CrossRef
Levy, D. L., & Egan, D. (2003). A neo-Gramscian approach to corporate political strategy: Conflict and accommodation in the climate change negotiations. Journal of Management Studies, 40(4), 803–829.CrossRef
Li, D., Huang, M., Ren, S., Chen, X., & Ning, L. (2018). Environmental legitimacy, green innovation, and corporate carbon disclosure: Evidence from CDP China 100. Journal of Business Ethics, 150(4), 1089–1104.CrossRef
Lins, K. V., Servaes, H., & Tamayo, A. (2017). Social capital, trust, and firm performance: The value of corporate social responsibility during the financial crisis. The Journal of Finance, 72(4), 1785–1824.CrossRef
Liu, C. (2018). Are women greener? Corporate gender diversity and environmental violations. Journal of Corporate Finance, 52(October), 118–142.CrossRef
Liu, Y., Mauer, D. C., & Zhang, Y. (2014). Firm cash holdings and CEO inside debt. Journal of Banking & Finance, 42(2), 83–100.CrossRef
MacKay, B., & Munro, I. (2012). Information warfare and new organizational landscapes: An inquiry into the ExxonMobil–Greenpeace dispute over climate change. Organization Studies, 33(11), 1507–1536.CrossRef
Malik, M. (2015). Value-enhancing capabilities of CSR: A brief review of contemporary literature. Journal of Business Ethics, 127(2), 419–438.CrossRef
Masulis, R. W., & Mobbs, S. (2011). Are all inside directors the same? Evidence from the external directorship market. The Journal of Finance, 66(3), 823–872.CrossRef
Matsumura, E. M., Prakash, R., & Vera-Muñoz, S. C. (2014). Firm-value effects of carbon emissions and carbon disclosures. The Accounting Review, 89(2), 695–724.CrossRef
Millar, R., Fuglestvedt, J., Friedlingstein, P., et al. (2017). Emission budgets and pathways consistent with limiting warming to 1.5 °C. Nature Geoscience, 10, 741–747.CrossRef
Naaraayanan, S., Sachdeva, K., & Sharma, V. (2021). The real effect of environmental activists investing. SSRN working paper.
Newton, L. (2005). Business Ethics and the Natural Environment. Blackwell Publishing.CrossRef
Northcott, M. S., & Aid, C. (2007). A moral climate: The ethics of global warming. London, England: Darton Longman & Todd.
Nyberg, D., & Wright, C. (2012). Justifying business responses to climate change: Discursive strategies of similarity and difference. Environment and Planning A, 44(8), 1819–1835.CrossRef
Nyberg, D., Spicer, A., & Wright, C. (2013). Incorporating citizens: Corporate political engagement with climate change in Australia. Organization, 20(3), 433–453.CrossRef
Okereke, C. (2007). An exploration of motivations, drivers and barriers to carbon management: The UK FTSE 100. European Management Journal, 25(6), 475–486.CrossRef
Okereke, C., & Russel, D. (2010). Regulatory pressure and competitive dynamics: Carbon management strategies of UK energyintensive companies. California Management Review, 52(4), 100–124.CrossRef
Ortiz-de-Mandojana, N., Aragón-Correa, J. A., Delgado-Ceballos, J., & Ferrón-Vílchez, V. (2012). The effect of director interlocks on firms’ adoption of proactive environmental strategies. Corporate Governance: An International Review, 20(2), 164–178.CrossRef
Painter, M. (2020). An inconvenient cost: The effects of climate change on municipal bonds. Journal of Financial Economics, 135(2), 468–482.CrossRef
Petersen, M. A. (2009). Estimating standard errors in finance panel data sets: Comparing approaches. The Review of Financial Studies, 22(1), 435–480.CrossRef
Pinkse, J., & Kolk, A. (2009). Global climate change and business. Taylor & Francis.CrossRef
Phan, H. V. (2014). Inside debt and mergers and acquisitions. Journal of Financial and Quantitative Analysis, 49(5–6), 1365–1401.CrossRef
Pitcher, P., Chreim, S., & Kisfalvi, V. (2000). CEO succession research: Methodological bridges over troubled waters. Strategic Management Journal, 21(6), 625–648.CrossRef
Prado-Lorenzo, J. M., & Garcia-Sanchez, I. M. (2010). The role of the board of directors in disseminating relevant information on greenhouse gases. Journal of Business Ethics, 97(3), 391–424.CrossRef
Raheja, C. G. (2005). Determinants of board size and composition: A theory of corporate boards. Journal of Financial and Quantitative Analysis, 40(2), 283–306.CrossRef
Rao, K., & Tilt, C. (2016). Board composition and corporate social responsibility: The role of diversity, gender, strategy and decision making. Journal of Business Ethics, 138(2), 327–347.CrossRef
Russo, A., & Perrini, F. (2010). Investigating stakeholder theory and social capital: CSR in large firms and SMEs. Journal of Business Ethics, 91(2), 207–221.CrossRef
Schmidt, K. M. (1997). Managerial incentives and product market competition. The Review of Economic Studies, 64(2), 191–213.CrossRef
Shen, C. H. H., & Zhang, H. (2020). What's good for you is good for me: The effect of CEO inside debt on the cost of equity. Journal of Corporate Finance, 64(October), in press.
Shivdasani, A., & Yermack, D. (1999). CEO involvement in the selection of new board members: An empirical analysis. The Journal of Finance, 54(5), 1829–1853.CrossRef
Shive, S. A., & Forster, M. M. (2020). Corporate governance and pollution externalities of public and private firms. The Review of Financial Studies, 33(3), 1296–1330.CrossRef
Solomon, R. C. (2004). Aristotle, ethics and business organizations. Organization Studies, 25(6), 1021–1043.CrossRef
Srivastav, A., Armitage, S., & Hagendorff, J. (2014). CEO inside debt holdings and risk-shifting: Evidence from bank payout policies. Journal of Banking & Finance, 47(October), 41–53.CrossRef
Sundaram, R. K., & Yermack, D. L. (2007). Pay me later: Inside debt and its role in managerial compensation. The Journal of Finance, 62(4), 1551–1588.CrossRef
Talbot, D., & Boiral, O. (2015). Strategies for climate change and impression management: A case study among Canada’s large industrial emitters. Journal of Business Ethics, 132(2), 329–346.CrossRef
Tung, F., & Wang, X. (2012). Bank CEOs, Inside Debt Compensation, and the Global Financial Crisis. Working Paper, Boston University.
Van Bekkum, S. (2016). Inside Debt and Bank Risk. Journal of Financial and Quantitative Analysis, 51(2), 359–385.CrossRef
Walls, J., Berrone, P., & Phan, P. (2012). Corporate governance and environmental performance: Is there really a link? Strategic Management Journal, 33(8), 885–913.CrossRef
Wang, C., Xie, F., Xin, X. (2010). Managerial ownership of debt and accounting conservatism. Working paper, Chinese University of Hong Kong.
Wang, C., Xie, F., & Xin, X. (2018). CEO inside debt and accounting conservatism. Contemporary Accounting Research, 35(4), 2131–2159.CrossRef
Wei, C., & Yermack, D. (2011). Investor reactions to CEOs’ inside debt incentives. The Review of Financial Studies, 24(11), 3813–3840.CrossRef
Winn, M., Kirchgeorg, M., Griffiths, A., Linnenluecke, M. K., & Günther, E. (2011). Impacts from climate change on organizations: A conceptual foundation. Business Strategy and the Environment, 20(3), 157–173.CrossRef
Wu, T. H., & Lin, M. C. (2019). Relationship of CEO inside debt and corporate social performance: A data envelopment analysis approach. Finance Research Letters, 29(June), 308–314.CrossRef
Metadaten
Titel
Does CEO Risk-Aversion Affect Carbon Emission?
verfasst von
Ashrafee Hossain
Samir Saadi
Abu S. Amin
Publikationsdatum
03.01.2022
Verlag
Springer Netherlands
Erschienen in
Journal of Business Ethics / Ausgabe 4/2023
Print ISSN: 0167-4544
Elektronische ISSN: 1573-0697
DOI
https://doi.org/10.1007/s10551-021-05031-8

Weitere Artikel der Ausgabe 4/2023

Journal of Business Ethics 4/2023 Zur Ausgabe

Original Paper

Mobilizing After Corporate Environmental Irresponsibility in a Community of Place: A Framing Microprocess Perspective

Original Paper

Markets Within the Limit of Feasibility

Original Paper

How to Evaluate Managerial Nudges

Original Paper

Vanishing Boycott Impetus: Why and How Consumer Participation in a Boycott Decreases Over Time

Original Paper

Accounting Standard-Setting for an Emission Trading Scheme: The Korean Case

Original Paper

Foreign Institutional Investors, Legal Origin, and Corporate Greenhouse Gas Emissions Disclosure

Premium Partner

    Bildnachweise