Abstract
In this article, we investigate the value consequence of a firm's irresponsible environmental behavior, carbon dioxide emissions, through the lens of lenders and bondholders. We firstly find that a firm's carbon risk significantly enhances the cost of debt financing. In particular, we find that the positive nexus between a firm's carbon emissions and the cost of debt has a great discrepancy in countries which have different institutions, cultures, and strength of legal rights. Our empirical evidence suggests that corporate environment risk may raise default risk and ultimately provoke creditors to enhance their required returns. Furthermore, our findings also are consistent with the viewpoints of stakeholders and ethical theories.
Original language | English |
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Pages (from-to) | 56-69 |
Number of pages | 14 |
Journal | International Journal of Tourism Research |
Volume | 23 |
Issue number | 1 |
DOIs | |
Publication status | Published - 2021 Jan 1 |
All Science Journal Classification (ASJC) codes
- Geography, Planning and Development
- Transportation
- Tourism, Leisure and Hospitality Management
- Nature and Landscape Conservation