The green reputation: Corporate culture and environmental reputation risk

Xinyu Wang and Jing Zhao

Finance Research Letters, 2023, vol. 58, issue PA

Abstract: This study examines the corporate culture outcomes over the Environmental Reputation Risk (ERR). We show that firms with a strong corporate culture are associated with a lower ERR. In particular, the relationship is stronger among corporate cultural values that emphasize innovation, respect, and product and service quality, and it is more significant among firms with higher managerial opportunistic incentives. Moreover, a strong culture is associated with a lower environmental cost. Overall, our results suggest that corporate culture plays a disciplinary role in preventing managers from conducting environmentally irresponsible activities.

Keywords: Corporate culture; Environmental reputation risk; Environmental cost (search for similar items in EconPapers)
JEL-codes: G30 G32 M14 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:58:y:2023:i:pa:s1544612323006190

DOI: 10.1016/j.frl.2023.104247

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