Time Horizons of Environmental Versus Non-Environmental Costs: Evidence from US Tort Lawsuits
dc.contributor.author | Regnier, Eva | |
dc.contributor.author | Tovey, Craig | |
dc.date | 2007 | |
dc.date.accessioned | 2016-07-13T17:24:46Z | |
dc.date.available | 2016-07-13T17:24:46Z | |
dc.date.issued | 2007 | |
dc.identifier.citation | Business Strategy and the Environment. 16, 249–265 (2007) | en_US |
dc.identifier.uri | https://hdl.handle.net/10945/49165 | |
dc.description | The article of record as published may be found at http://dx.doi.org/10.1002/bse.494 | en_US |
dc.description.abstract | One explanation for a positive correlation between environmental and financial performance at the firm level is a bias in firms’ investment evaluation processes caused by systematic differences between environmental and other investment opportunities. One of these systematic differences, often hypothesized but still unverified, is that environmental costs occur farther in the future than other costs. We empirically test this hypothesis, and find statistically significant support for it. In our data set the mean time lag for environmental costs was more than ten years, compared with five years for the control set costs. Such a difference could induce managers to accept too much environmental liability if they evaluate investments using discounted cash flow methods with a discount rate based on the firm-wide cost of capital. | en_US |
dc.description.sponsorship | US Department of Energy Integrated Manufacturing Predoctoral Fellowship | en_US |
dc.format.extent | 17 p. | en_US |
dc.publisher | John Wiley & Sons, Ltd and ERP Environment | en_US |
dc.rights | This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States. | en_US |
dc.title | Time Horizons of Environmental Versus Non-Environmental Costs: Evidence from US Tort Lawsuits | en_US |
dc.type | Article | en_US |
dc.contributor.corporate | Naval Postgraduate School (U.S.) | en_US |
dc.subject.author | environmental | en_US |
dc.subject.author | management | en_US |
dc.subject.author | accounting | en_US |
dc.subject.author | corporate sustainability | en_US |
dc.subject.author | discount rate | en_US |
dc.subject.author | time horizon | en_US |
dc.subject.author | EPA | en_US |
dc.subject.author | investment valuation | en_US |
dc.description.funder | US Department of Energy Integrated Manufacturing Predoctoral Fellowship | en_US |