The economic consequences of carbon emissions

Title: The economic consequences of carbon emissions
Creator: Bose, Sudipta; Podder, Jyotirmoy
Relation: 2017 Accounting and Finance Association of Australia and New Zealand (AFAANZ) Conference. Proceedings of the 2017 Accounting and Finance Association of Australia and New Zealand (AFAANZ) Conference (Adelaide, S.A. 2-4 July, 2017)
Publisher: Accounting and Finance Association of Australia and New Zealand (AFAANZ)
Resource Type: conference paper
Date: 2017
Description: We examine the economic consequences of carbon emissions. Using the data from 36 countries across the world, we find that carbon emissions and cost of equity are positively associated implying a higher cost of equity for firms with a higher level of carbon emissions. Moreover, we document two important mechanisms, institutional ownership and analyst coverage, through which the impact of carbon emissions reflects in higher cost of equity capital. Carbon emissions are negatively associated with institutional ownership and analyst coverage. This suggests that firms with more carbon emissions have a higher level of information asymmetry and more financial constraints that might be plausible reasons for their higher cost of equity capital.
Subject: carbon emissions; cost of capital; international; analysts forecast; institutional investor
Identifier: http://hdl.handle.net/1959.13/1388484
Identifier: uon:32772
Language: eng
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