Cash-rich firms and carbon emissions
Islam, Md shahidul (2022) Cash-rich firms and carbon emissions. International Review of Financial Analysis, 81. ISSN 1057-5219
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Abstract
We investigate whether corporate cash holdings affect carbon dioxide emissions. Using a sample of 5,402 firm-years observations from 943 U.S. firms during 2007–2017, we find that carbon emissions are lower in firms with higher corporate cash holdings. The effect of cash holdings on carbon emissions is more pronounced in firms with low leverage and less financial constraints. Our channel analysis further unveils that renewable energy consumption and carbon abatement investment are higher in cash-rich firms, which transmit lower carbon emissions. Our findings are robust to different identification strategies and alternative measures of cash holdings and carbon emissions. Overall, our paper provides novel evidence on the role of corporate cash holdings in mitigating carbon emissions.
Item Type: | Article |
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Uncontrolled Keywords: | cash holdings, carbon emissions, renewable energy consumption, carbon abatement investment |
Subjects: | H Social Sciences > HB Economic Theory H Social Sciences > HF Commerce |
Divisions: | Faculty of Arts, Business & Applied Social Science > Suffolk Business School |
Depositing User: | David Upson-Dale |
Date Deposited: | 07 Mar 2022 10:23 |
Last Modified: | 10 May 2022 15:34 |
URI: | https://oars.uos.ac.uk/id/eprint/2385 |
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