|
on Corporate Finance |
| By: | Andrew Clare; Carlos Manuel Pinheiro; Alberto Franco Pozzolo |
| Abstract: | Being uninvolved in day-to-day management of a company, Non-Executive Directors (NEDs) are arguably well-suited to oversee the drive for more sustainable business practices. Our study explores the correlation between the professional capital of NEDs and ESG performance for a sample of FTSE-350 listed companies spanning the years 2012 to 2022. Our findings reveal that board connectedness, particularly the simultaneous presence on boards of companies exhibiting superior ESG performance, significantly influences a company's overall ESG score. Our results highlight the relevance of board capital on corporate ESG performance, with practical implications for corporate governance. |
| Keywords: | ESG; Corporate Governance; Boards: Non-executive directors; Network Centrality |
| JEL: | G34 M14 D22 Q56 |
| Date: | 2024–08–06 |
| URL: | https://d.repec.org/n?u=RePEc:csl:devewp:494 |
| By: | Kaldorf, Matthias; Shi, Mengjie |
| Abstract: | This paper shows that firm credit constraints impair climate policy. Empirically, firms with tighter credit constraints, measured by their distanceto-default, exhibit a relatively smaller emission reduction after a carbon tax increase. We incorporate this channel into a quantitative DSGE model with endogenous credit constraints and carbon taxes. Credit frictions reduce the optimal investment into emission abatement since shareholders are less likely to receive the payoff from such an investment. We find that carbon taxes consistent with net zero emissions are 24 dollars/ton of carbon larger in the presence of endogenous credit constraints than in an economy without such frictions. |
| Keywords: | Climate Policy, Credit Constraints, Emission Reduction, Corporate Capital Structure, Firm Heterogeneity |
| JEL: | E44 G21 G28 Q58 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:bubdps:300704 |
| By: | Amore, Mario Daniele (HEC Paris); Miller, Danny (HEC Montreal) |
| Abstract: | Although family firms are ubiquitous, their prevalence displays major geographic disparities and their performance differs across regions. We review an extensive literature in economics and finance showing that formal institutional factors play a key role in explaining variations in the diffusion of family firms and their performance. We also review a more neglected but rapidly emerging stream of research focusing on culture as a source of these variations. By providing a framework for current theories, findings and methods, we demonstrate how cultural elements such as trust, religion, family values and collectivism provide useful answers to where and why family firms exist and how well they perform. |
| Keywords: | family firms; culture; trust; social capital |
| JEL: | G34 |
| Date: | 2023–04–17 |
| URL: | https://d.repec.org/n?u=RePEc:ebg:heccah:1487 |