- Published
- 2021-05-02
- Venue
- Review of Financial Studies, vol. 35, no. 2, pp. 576-635
- Cited by
- 474
- Open access
- No free copy found
- DOI
- 10.1093/rfs/hhab056
Abstract
This paper documents evidence that financial constraints increase firms’ toxic emissions given that firms actively trade off abatement costs against potential legal liabilities. Exploring three quasi-natural experiments in which firms’ financial resources are likely exogenously affected, we find that relaxing financial constraints reduces U.S. public firms’ toxic releases. The effects of financial constraints on toxic releases are amplified when regulatory enforcement and external monitoring weaken. Overall, our evidence highlights the real effects of financial constraints in the form of environmental pollution, which is a costly negative externality imposed on society and public health.
Cite this paper
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- APA 7
Xu, Q., & Kim, T.-H. (2021). Financial Constraints and Corporate Environmental Policies. Review of Financial Studies, 35(2), 576–635. https://doi.org/10.1093/rfs/hhab056
- MLA 9
Xu, Qiping, and Tae-Hyun Kim. "Financial Constraints and Corporate Environmental Policies." Review of Financial Studies, vol. 35, no. 2, 2021, pp. 576–635, https://doi.org/10.1093/rfs/hhab056.
- Chicago
Xu, Qiping, and Tae-Hyun Kim. "Financial Constraints and Corporate Environmental Policies." Review of Financial Studies 35, no. 2 (2021): 576–635. https://doi.org/10.1093/rfs/hhab056.
- GOST
Xu Q., Kim T.-H. Financial Constraints and Corporate Environmental Policies // Review of Financial Studies. — 2021. — Vol. 35, № 2. — P. 576–635. — URL: https://doi.org/10.1093/rfs/hhab056
- BibTeX
@article{xu2021financial, title = {{Financial Constraints and Corporate Environmental Policies}}, author = {Qiping Xu and Tae-Hyun Kim}, journal = {Review of Financial Studies}, year = {2021}, volume = {35}, number = {2}, pages = {576--635}, doi = {10.1093/rfs/hhab056}, url = {https://doi.org/10.1093/rfs/hhab056} }- RIS
TY - JOUR AU - Xu, Qiping AU - Kim, Tae-Hyun TI - Financial Constraints and Corporate Environmental Policies JO - Review of Financial Studies VL - 35 IS - 2 SP - 576 EP - 635 PY - 2021 DA - 2021/05/02 DO - 10.1093/rfs/hhab056 UR - https://doi.org/10.1093/rfs/hhab056 ER -