WebbOne of the first papers studying the relationship between sustainability and cost of capital was by Sharfman and Fernando ( 2008 ). Drawing on risk mitigation theory, the authors hypothesized that improved environmental risk management should lower a firm’s cost of debt and equity, and they found mixed results. Webbabc bus ethics doi corporate environmental responsibility and firm risk li cai1 jinhua cui2 hoje jo3 received: 21 may 2014 accepted: 22 march 2015 springer

Sustainability Performance and the Cost of Capital

WebbSharfman and Fernando (2008) look at environmental risk management and how it affects the weighted average cost of capital (WACC). They use a one-year cross-section of a sub … Webbe ectiveness (Sharfman and Fernando, 2008). While CSR may directly a ect the operations of a rm, another mechanism to in u-ence its nancial performance is through the cost of … portable water well drilling

Is there a relation between the cost of debt and environmental ...

Webb“Good” firms has a higher than median KLD score in social strengths but a lower than median KLD 1 The stakeholder theory predicts that socially responsible firms may be subjected to lower social or environment risk than socially irresponsible firms (e.g., Waddock and Graves, 1997; Feldman, Soyka and Ameer, 1997; Sharfman and Fernando, … WebbSharfman and Fernando (2008) 1999–2002 267 US firms Linear regression Cost of equity (WACC) Emissions from Toxic Release Inventory Lower cost of capital for companies with better ... (Sharfman and Fernando2008),loancontractconditions(NandyandLodh2012),costofdebt(Chava 2014) … WebbJ., 29: 569–592 (2008) DOI: 10.1002/smj 578 M. P. Sharfman and C. S. Fernando what percentage of the firm’s discharges were as our reference year (t), we estimated our models being treated to reduce their toxicity … irs efile schedule 2022