TY  - UNPD
A1  - Götz, Martin
T1  - Financial constraints and corporate environmental responsibility
T2  - SAFE working paper series ; No. 241
N2  - This paper analyzes the effect of financial constraints on firms' corporate social responsibility. Exploiting heterogeneity in firms' exposure to a monetary policy shock in the U.S., which reduced financial constraints for some firms, I find that firms increase their environmental responsibility. I use facility-level data to account for unobservable time-varying influences on pollution and find that toxic emissions decrease when parent companies are more exposed to the monetary policy shock. I further find that these facilities are also more likely to implement pollution abatement activities. Examining within-parent company heterogeneity I find that pollution abatement investments center on facilities at greater risk of facing additional costs due to environmental regulation. The findings are consistent with the idea that a reduction in financial constraints reduces pollution as it allows firms to implement pollution abatement measures.
T3  - SAFE working paper - 241 
KW  - Corporate Social Responsibility
KW  - Emissions
KW  - Financial Constraints
KW  - Pollution
KW  - Bond Markets
Y1  - 2019
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/48764
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-487642
IS  - September 13, 2018
PB  - SAFE
CY  - Frankfurt am Main
ER  -