The effect of air pollution on cash holdings and financial leverage
Yükleniyor...
Tarih
2023
Yazarlar
Dergi Başlığı
Dergi ISSN
Cilt Başlığı
Yayıncı
Emerald Publishing
Erişim Hakkı
info:eu-repo/semantics/closedAccess
Özet
Purpose: The purpose of this paper is to investigate whether air pollution has significant impact on corporate cash holdings and financial leverage. Design/methodology/approach: The data of 199 firms listed on Istanbul Stock Exchange during the period 2009–2020 is analyzed by using pooled ordinary least squares and two-step system generalized method of moments models. Findings: The results indicate that firms in regions with high air pollution tend to increase cash level. In addition, the positive effect of air pollution on cash level is stronger and more significant for environmentally sensitive firms and firms with low operational and distress risk. The results also show insignificant effect of air pollution on financial leverage. Practical implications: Firms in regions with high air pollution should conduct proactive environmental protection procedures and enhance their eco-efficiency instead of holding excess cash that could negatively affect financial performance. In this context, policymakers should provide financial facilities to firms located in regions with high air pollution and that have low ability to finance environmental investments. On the other hand, the environmental laws and regulations introduced by regulatory authorities can enhance the economic development and firm performance by decreasing the adverse influences of air pollution on corporate financial policies. Originality/value: To the best of the author’s knowledge, this research is one of few that examines the impact of air pollution on corporate cash holdings and financial leverage in emerging markets.
Açıklama
Anahtar Kelimeler
Air pollution, Corporate cash holdings, Financial leverage, Türkiye
Kaynak
Journal of Global Responsibility
WoS Q Değeri
N/A
Scopus Q Değeri
Q2
Cilt
Article in Press
Sayı
Künye
Kalash, I. (2023). The effect of air pollution on cash holdings and financial leverage. Journal of Global Responsibility, Article in Press.
