Gone with the wind: An externality of earnings pressure*

• 成果类型: Article
• 署名作者: Liu, Zheng; Shen, Hongtao; Welker, Michael; Zhang, Ning; Zhao, Yang
• 署名单位: Queens University - Canada; Hong Kong Polytechnic University; Jinan University
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2021.101403
• 发表日期: 2021
• 关键词: Pollution haven hypothesis; management; CHINA; determinants; environment; COMPETITION; OWNERSHIP

摘要

We investigate an externality of earnings pressure from capital markets. We define earnings pressure as managers' incentives to meet or beat earnings expectations. Using detailed establishment-level sulfur dioxide emission data from China covering 2003 to 2012, we find that firms with earnings pressure have higher intensity sulfur dioxide emissions. This effect is more pronounced when the strength of monitoring and regulatory enforcement is weak, when litigation risk is low, and when the public firm is not mandated to issue a corporate social responsibility report. Our study sheds light on how financial goals may conflict with environmental goals, and has important implications for academics, regulators and society. (c) 2021 Elsevier B.V. All rights reserved.