Green Innovation and Corporate Default Risk
We investigate the impact of green innovation on default risk for the period 2003–2020. Using 15,015 firm-year observations from 2,301 unique U.S. firms and a firm-fixed effects regression model, we find that firms with higher green innovation experience lower default risk as measured by the distance-to-default, probability of default, and CDS spreads. We find robust evidence addressing potential endogeneity in the association between green innovation and default risk by applying three different approaches: the propensity score matching approach, the instrumental variable approach, and the difference-in-differences technique. Our channel analysis results show that high green innovation reduces carbon emissions, which translates into lower default risk
Year of publication: |
2022
|
---|---|
Authors: | Safiullah, Safi ; Phan, Dinh Hoang Bach ; Kabir, Md. Nurul |
Publisher: |
[S.l.] : SSRN |
Saved in:
freely available
Saved in favorites
Similar items by person
-
Green innovation and corporate default risk
Safiullah, Md, (2024)
-
Debt Overhang and Carbon Emissions
Houqe, Noor, (2022)
-
Safiullah, Safi, (2022)
- More ...