This paper empirically examines the relevance of external credit ratings in the capital structure decision-making process with regard to an international firm sample. Using the rating outlook to measure the imminence of a rating change, allows us to test managers' ex-ante capital structure...

This research examines whether stocks of firms operating in highly polluting industries (“dirty stocks”) are treated like sin stocks. We assume that investors shun dirty stocks based on non-pecuniary preferences and employ screening approaches that lead to the exclusion of entire industries....

We examine whether mandatory climate reporting leads to changes in firms’ carbon emissions. Using propensity score matching and a difference-in-differences design, we assess the effects of the Greenhouse Gas Reporting Program (GHGRP), introduced by the Environmental Protection Agency (EPA) in...

German abstract: Hinreichend ambitionierte CO2 ‐Preise lenken Realinvestitionen grundsätzlich in die richtige Richtung. Wenn deren Einführung der Politik jedoch nicht gelingt, bedarf es anderer Instrumente, um eine Fehlallokation von Kapital zu verhindern. Wir schlagen daher im Zuge des...