Keywords: Climate Change; Financial Constraints; Carbon Decarbonization; Multinational Cor-porations; Sustainability
JEL Classification Number: G14; G31; M54
학회소식
[2022년 5차 CAFM2022]Corporate Decarbonization under Financial Constraints: International Evidence
작성자 : 관리자
조회수 : 1597
게시일 :
2022-12-20
As climate change has emerged as one of the world’s biggest environmental challenges, corporate commitments to decarbonization are vital in combating climate change. Our study investigates whether and how firms strategically decarbonize under resource constraints. Analyzing 9,313 firms across 51 countries suggests that firms are less likely to decarbonize and implement carbon abatement strategies when faced with financial constraints. However, environmental regulatory stringency, while not government policies that subsidize green technology development, can mitigate the adverse effect of financial constraints on corporate decarbonization. Unlike domestic companies, multinational corporations, especially with limited financial resources, can avert strict environmental regulations by shifting their emissions-intensive activity to foreign subsidiaries in countries with weaker environmental regulations. Finally, our results suggest that financially constrained emitters have limited access to international equity and bond markets. Overall, our study highlights the need to integrate financial constraints into the analysis of corporate carbon performance.
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