We aim to examine the relation between CEO’s early-life experience of disasters and corporate environmental performance. We hypothesize that CEO’s early-life exposure to the adversity of natural disasters acts as a catalyst for a change in CEO’s awareness and cognitions that accompanies a...

This study examined the effect of green credit policies on company commitments to employ green management strategies. Using Shanghai and Shenzhen A-share listed company-level data from 2009 to 2015, it was found that green credit policies had a significant positive, causal effect on company...

Firms in China increase green innovation, but not other types of innovation, following a mandate that requires them to regularly disclose their corporate social responsibility (CSR) activities. Further analyses show that the CSR disclosure mandate leads to higher media coverage of disclosing...

Given that scope 3 emissions at an industrial supply chain level accounts for more than 75% of the firm’s total greenhouse gas emissions and are steadily increasing, it is crucial to address this issue to realize net-zero carbon targets. Furthermore, the recent phase-in of scope 3 emissions in...

This study examines peer influence, and its underlying motives, on environmental protection performance. We find consistent evidence of peer effects on environmental protection performance among Chinese firms. When the average environmental protection score of industry peers increases by one...

This working paper is written by Victor Leung (Hong Kong Monetary Authority), Wilson Wan (Hong Kong Monetary Authority) and Joe Wong (Hong Kong Monetary Authority).This study explores the “dark side” of the current development of corporate green bond markets. We document that greenwashing is...

We investigate whether the sustainability implications of firms’ innovative pursuits are associated with their disclosure choices. We find that firms with a greater percentage of patents granted in environmentally sound technologies provide more innovation disclosure in conference calls...

We analyze the corporate green bond market under a rational framework without an innate green preference, using a simple adverse selection model. Firms can use green bonds to signal their green credentials to investors. Transition risk stems from uncertainty over the introduction of carbon...

Using a novel dataset from Freiberg et al. (2021) that measures corporate environmental costs, we examine the influence of institutional investors on the monetized environmental impact generated by their investee firms. Using a sample of 64 countries and 12 industries, we document that...