This paper examines corporate carbon-offsetting, in which firms compensate for carbon emissions by financing carbon-reduction projects elsewhere. Analyzing offset purchase disclosures by Korean firms, we examine what drives companies to buy offsets and what effects offset consumption has had on...

We examine the effects of taxes on Corporate Social Responsibility (CSR). Employing a tax reform in Korea that imposed a new tax on cash retention, we find that treated firms improve CSR performance after the tax reform was enacted. This result is driven by improvement in environmental and...

This paper examines corporate carbon-offsetting, in which firms compensate for carbon emissions by financing carbon-reduction projects elsewhere. Analyzing offset purchase disclosures by Korean firms during the 2011-2019 period, we examine what drives companies to buy offsets and what effects...

We investigate the effects of incentive-alignment mechanisms on voluntary disclosure of carbon emissions in Korea, a latecomer in incorporating environmental practices into business operations. We consider in particular the effects of corporate governance and compensation mechanisms. We find...

We find that investors responded positively to a mandated gender quota in Korea, which requires large public firms to include at least one female director on their boards. Investor responses were more positive for firms with high risk, weak corporate governance, and poor social performance,...

We investigate the effects of corporate governance on foreign ownership. To do so, we exploit a reform in Korea, which mandated that corporate boards governing large public firms must form audit committees and ensure that outside directors comprise 50% of their members, as an event that enhanced...

We examine the effects of environmental regulations on corporate environmental and financial performance, exploiting the first phase of the Korean Emissions Trading System (ETS) as an exogenous shock. We find that treated firms did not reduce their carbon emissions during the sample period, but...

This study examines the relationship between carbon risk and stock returns in Korea. We find that a firm’s carbon intensity is a significant determinant of its cross-sectional stock returns. Stocks with high exposure to carbon risk exhibit higher average returns. The abnormal return associated...

We examine the determinants of and investor responses to corporate environmental, social, and governance (ESG) bond issuance in Korea. We find that ESG bond issuance is positively associated with firm size and foreign ownership stakes. We also find that firms that establish ESG committees at the...

This paper develops an occupation-level measure of Capital-Embodied Innovation (CEI) by matching patents with capital goods based on their text similarity. The impact of CEI on labor demand is heterogeneous, depending on the similarity between capital and occupational tasks. Specifically, CEI...