This paper investigates the effect of financial constraints on pollution abatement methods. Using unique plant … discourage pollution prevention and have no impact on pollution treatment without environmental laws. First, financially … constrained firms are less likely to invest in pollution prevention but not in pollution treatment. Second, by applying a …

consensus EPS forecasts (indicating short-termism) release significantly more toxins because they cut pollution abatement costs … to boost earnings. Next, we investigate whether the positive relation between meeting benchmarks and pollution is …