Firm Pollution and Reputational Risk: Where Do We Stand?

Alexia Ventouri (), Georgios Chortareas () and Fangyuan Kou ()
Additional contact information
Alexia Ventouri: King’s College London
Georgios Chortareas: King’s College London
Fangyuan Kou: King’s College London

Chapter Chapter 6 in New Challenges for the Banking Industry, 2023, pp 119-143 from Palgrave Macmillan

Abstract: Abstract This chapter considers the association between a firm’s pollution abatement behavior and reputational risk. We examine the contemporary literature on the interplay between a company’s environmental performance and financial performance, environmental performance and financing costs, and environmental performance and corporate governance characteristics. We discuss the interconnections between corporate ownership and environmental responsibility. We then analyze the links between reputational risk and polluting activities, focusing on the driving factors of corporate reputation risk and CSR. We provide an exploratory analysis of reputational risk, considering the experience of U.S. companies over 13 years before the COVID-19 pandemic. We use corporate chemical emission and reputational risk data from the United Toxic Release Inventory of the U.S. Environmental Protection Agency and the RepRisk database, respectively. Our exploratory results reveal a strong link between corporate pollution and the reputational risk of firms.

Keywords: Firm pollution; Reputational risk; Environmental performance; CSR (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:pmschp:978-3-031-32931-9_6

Ordering information: This item can be ordered from
http://www.palgrave.com/9783031329319

DOI: 10.1007/978-3-031-32931-9_6

Access Statistics for this chapter

More chapters in Palgrave Macmillan Studies in Banking and Financial Institutions from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().