Environmental Externalities and Cost of Capital

By Sudheer Chava. Management Sciences, 2011

1,367 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/a1abc4db0f422dbb821ef28a1cf3e11e281402f3

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

In Economics and Econometrics

In Finance

Citations in the corpus

Environmental performance and the cost of debt: Evidence from commercial mortgages and REIT bonds (2019, background): “But beyond affectng operational performance, the CSR credentials of a firm may lso influence its ability to raise capital, and the price of such captal ( Chava, 2014 ).”
Corporate Social Responsibility and CEO Risk-Taking Incentives (2016, positive): “Firms with higher CSR have better access to finance (Cheng, Hong, and Shue, 2014) and face lower financing costs (Chava, 2014; El Ghoul, Guedhami, Kwok, and Mishra, 2011; Dhaliwalet al., 2011; Goss and Roberts, 2011).”
Greening Through Finance? (2021, background): “First and foremost, in contrast to Chava (2014) and Goss and Roberts (2011), we go beyond cross-sectional comparisons by considering the enactment of the rigorously enforced Guideline on Green Credit in China as an exogenous regulation shock to analyze the impacts of green credit regulation on…”
Carbon risk and corporate capital structure (2020, positive): “…interest in carefully evaluating borrowers’ carbon risk in the screening and monitoring process because they are potentially liable for environmental damages caused by borrowers and exposed to reputation risks as a result of lending to environmentally harmful projects (Chava 2014; Pitchford 1995).”
Financial Development and Industrial Pollution (2018, positive): “10Chava (2014) shows how the environmental profile of a firm affects both the cost of its equity and its debt capital, suggesting that both banks and equity investors take environmental concerns into account.”
Is Institutional Ownership Related to Corporate Social Responsibility? The Nonlinear Relation and Its Implication for Stock Return Volatility (2015, positive): “Several recent studies further find that CSR engagement can lower a firm’s cost of equity (e.g., Chava 2010, 2014; El Ghoul et al. 2011; Dhaliwal et al. 2011) and cost of debt (e.g., Chava 2014; Goss and Roberts 2011).”
Corporate Social Responsibility and Sustainable Finance (2020, positive): “…(Goss and Roberts, 2011; El Ghoul, Guedhami, Kwok, and Mishra, 2011; Dhaliwal, Li, Tsang, and Yang, 2011; Albuquerque, Koskinen, and Zhang, 2019; Chava, 2014; Hoepner, Oikonomou, Scholtens and Schroder, 2016); - lowering idiosyncratic risk and the probability of financial distress (Lee and…”
Integrating sustainability risks in asset management: the role of ESG exposures and ESG ratings (2019, neutral): “(2011); Chava (2014) and Eccles et al.”
The Importance of Climate Risks for Institutional Investors (2020, background): “…is in line with a focus on traditional investment risks in most of the finance literature and 14 In addition, a number of studies have found that firms’ environmental policies and actions can affect their cost of capital and market value, for example Sharfman and Fernando (2008) or Chava (2014).”
Corporate Social Responsibility and Firm Debt Maturity (2015, positive): “…on the cost of capital for high CSR firms show that the cost of equity is lower for firms with high social ratings (Sharfman and Fernando 2008; Chava 2014; El Ghoul et al. 2011; Girerd-Potin et al. 2013), and that the premium associated with social responsibility for private loans is not…”
Climate Change and Corporate Cash Holdings: Global Evidence (2020, positive): “For instance, Chava (2014) argues that investors demand a higher cost of capital for firms excluded by environmental screens (e.g., firms with climate change concerns, substantial emissions, etc. in their profile), and that lower number of institutional investors and fewer banks participate in…”
Corporate social responsibility versus corporate shareholder responsibility: A family firm perspective (2020, background): “…(2005), Luo and Bhattacharya (2006), Kempf and Osthoff (2007), Sharfman and Fernando (2008), Deng, Kang, and Low (2013), Servaes and Tamayo (2013), Chava (2014), Eccles, Ioannou, and Serafeim (2014), Crifo, Forget, and Teyssier (2015), Flammer (2015), Lins, Servaes, and Tamayo (2017) and…”
An Efficiency Perspective on Carbon Emissions and Financial Performance (2020, background): “A growing stream of literature theorizes that good environmental performance has cash-flow preserving effects (Albuquerque et al., 2019; Chava, 2014; Lins et al., 2017; Sharfman and Fernando, 2008).”
Can Sustainable Investing Save the World? Reviewing the Mechanisms of Investor Impact (2020, background): “While a number of studies show that large companies with good ESG ratings enjoy a lower cost of capital (e.g., Chava, 2014 ), it is ambiguous whether this is due to investor demand—and, thus, an investor impact—or to the superior risk characteristics of those companies.”