We investigate the financing strategies of environmentally responsible firms to understand how they set target capital structures and make incremental financing decisions. Literature shows that firms with better environmental performance have lower risk and better access to financing. However, it is not obvious how these firms choose to finance their investments. Using an extensive data set of U.S. firms, we find that firms with superior environmental performance have significantly lower debt ratios and use mostly short-term debt for temporary financing needs. In doing so, environmentally responsible firms are able to achieve more tax savings and experience lower costs of financial distress. Our results provide new empirical facts about environmental performance and financing decisions, and they help explain the observed relationship between environmental performance and economic performance.
机构:
Claremont Mckenna Coll, Robert Day Sch Econ & Finance, Claremont, CA 91711 USAClaremont Mckenna Coll, Robert Day Sch Econ & Finance, Claremont, CA 91711 USA
Barnea, Amir
Rubin, Amir
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机构:
Simon Fraser Univ, Fac Business Adm, Burnaby, BC V5A 1S6, CanadaClaremont Mckenna Coll, Robert Day Sch Econ & Finance, Claremont, CA 91711 USA
机构:
PWC Luxembourg, PricewaterhouseCoopers, 2 Rue Gerhard Mercator, L-2182 Luxembourg, LuxembourgPWC Luxembourg, PricewaterhouseCoopers, 2 Rue Gerhard Mercator, L-2182 Luxembourg, Luxembourg
Benlemlih, Mohammed
Girerd-Potin, Isabelle
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机构:
Univ Grenoble Alpes, CNRS, CERAG, Finance, BP 47, F-38040 Grenoble 9, FrancePWC Luxembourg, PricewaterhouseCoopers, 2 Rue Gerhard Mercator, L-2182 Luxembourg, Luxembourg
机构:
Univ Essex, Essex Business Sch, Essex Accounting Ctr, Wivenhoe Pk, Colchester CO4 3SQ, Essex, EnglandUniv Grenoble Alpes, CERAG, CNRS, BP 47, F-38040 Grenoble 9, France
Shaukat, Amama
Qiu, Yan
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h-index: 0
机构:
Univ Manchester, Manchester Business Sch, Booth St West, Manchester M15 6PB, Lancs, EnglandUniv Grenoble Alpes, CERAG, CNRS, BP 47, F-38040 Grenoble 9, France
机构:
Claremont Mckenna Coll, Robert Day Sch Econ & Finance, Claremont, CA 91711 USAClaremont Mckenna Coll, Robert Day Sch Econ & Finance, Claremont, CA 91711 USA
Barnea, Amir
Rubin, Amir
论文数: 0引用数: 0
h-index: 0
机构:
Simon Fraser Univ, Fac Business Adm, Burnaby, BC V5A 1S6, CanadaClaremont Mckenna Coll, Robert Day Sch Econ & Finance, Claremont, CA 91711 USA
机构:
PWC Luxembourg, PricewaterhouseCoopers, 2 Rue Gerhard Mercator, L-2182 Luxembourg, LuxembourgPWC Luxembourg, PricewaterhouseCoopers, 2 Rue Gerhard Mercator, L-2182 Luxembourg, Luxembourg
Benlemlih, Mohammed
Girerd-Potin, Isabelle
论文数: 0引用数: 0
h-index: 0
机构:
Univ Grenoble Alpes, CNRS, CERAG, Finance, BP 47, F-38040 Grenoble 9, FrancePWC Luxembourg, PricewaterhouseCoopers, 2 Rue Gerhard Mercator, L-2182 Luxembourg, Luxembourg
机构:
Univ Essex, Essex Business Sch, Essex Accounting Ctr, Wivenhoe Pk, Colchester CO4 3SQ, Essex, EnglandUniv Grenoble Alpes, CERAG, CNRS, BP 47, F-38040 Grenoble 9, France
Shaukat, Amama
Qiu, Yan
论文数: 0引用数: 0
h-index: 0
机构:
Univ Manchester, Manchester Business Sch, Booth St West, Manchester M15 6PB, Lancs, EnglandUniv Grenoble Alpes, CERAG, CNRS, BP 47, F-38040 Grenoble 9, France