Islam, Md shahidul (2022) Cash-rich firms and carbon emissions. International Review of Financial Analysis, 81. ISSN 1057-5219

	Text Cash-rich firms and carbon emissions_IRFA_Manuscript-FINAL.docx - Accepted Version Restricted to Repository staff only Download (154kB)
	Text Cash-rich firms and carbon emissions_IRFA_Manuscript-FINAL (1).pdf - Accepted Version Restricted to Repository staff only until 9 March 2024. Available under License Creative Commons Attribution Non-commercial No Derivatives. Download (733kB)
Preview	Text Cash-rich firms.pdf - Published Version Available under License Creative Commons Attribution. Download (666kB) | Preview

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.

Actions (login required)

View Item