The Effect of Green Investment on Corporate Behavior

By R. Heinkel, A. Kraus, Josef Zechner. Journal of Financial and Quantitative Analysis, 2001

1,252 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/93cfeb7e53bd49cb28e9b71ecee89acaa50e26e5

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Citations in the corpus

Stakeholder relations and stock returns: On errors in investors' expectations and learning (2013, background): “…"""""""""""""""""""" 2 Moreover, equilibrium models of asset prices predict that firms with strong stakeholder relations may even have lower expected returns if socially responsible investors drive up their stock prices (see, Heinkel, Kraus, and Zechner 2001, Hong and Kacperczyk 2009).”
Corporate social responsibility, the cost of equity capital and ownership structure: An analysis of Chinese listed firms (2015, background): “Heinkel et al. (2001) argue that exclusionary investing by environmentally conscious investors results in a scenario in which the stock of polluting firms is held only by neutral investors.”
Green and Good? The Investment Performance of US Environmental Mutual Funds (2011, background): “For instance, Heinkel et al. (2001)’s estimates indicate that more than 20% green investors are required to induce any polluting firms to reform. As far as we know, White (1995) is the only previous paper to compare environmental funds with both SRI investment and conventional investment.”
Corporate social responsibility, business strategy, and the environment (2010, neutral): “This would lead to a decrease in the cost of capital for irresponsible businesses (Heinkel et al., 2001).”
Fossil Fuel Divestment and Portfolio Performance (2018, neutral): “…literature which has relied upon much shorter time frames and less comprehensive industry classifications (e.g., Luo and Balvers, 2017), company-level exclusions (Trinks and Scholtens, 2017), and exclusions within particular investment funds (Hoepner and Schopohl, 2016; Ibikunle and Steffen, 2017).”
The impact of climate change on the cost of bank loans (2020, positive): “demonstrated by prior research (Merton 1987; Heinkel et al. 2001), if a sufficiently large number”
Financing environmentally-sustainable projects with green bonds (2019, methodology): “This analysis complements the stream of research on the effect of green investing on the corporate behavior of firms (see, e.g., Heinkel et al., 2001), where the cost of capital is obtained from the relative proportion of green versus non-green investors.”
Environmental Externalities and Cost of Capital (2011, background): “…sufficiently for firms adopting a polluting technology, firms may rationally switch to less polluting albeit more expensive technology (see Heinkel, Kraus, and Zechner (2001) and recent evidence in Holladay (2010) that polluters react to new environmental regulations by abating rather…”
Corporate Social Responsibility and Firm Value: Disaggregating the Effects on Cash Flow, Risk and Growth (2013, background): “El Ghoul et al. (2011) adopt a different approach to determine the implied cost of capital, and follow Hong and Kacperczyk (2009) in applying the theoretical work of Heinkel et al. (2001) that proposes that firm-specific risk might also be an influence on the cost of capital.”
Resiliency of Environmental and Social Stocks: An Analysis of the Exogenous COVID-19 Market Crash (2020, positive): “…with many investors selling their holdings, the SRI literature suggests that ESG investors are more resilient compared to investors in other stocks.5 Heinkel, Kraus, and Zechner (2001) develop a model of segmented capital markets based on investor preferences where a polluting firm, held by…”