From Iran: Does Improvement in Corporate Environmental Performance Affect Corporate Risk Taking?

摘要

In this article, we used a large sample of firms listed on the TSE from 2001 to 2006 and collected data about variables that had been shown to affect risk taking. We expected firms with better CEP to have better risk management. The results showed that corporate risk decreases with improved CEP. Previous research had shown that reduction of C0_2 emissions results in better productivity (Nishitani & Kokubu, 2012). However, the effect of CEP on corporate risk taking remained unanswered. In this research, we tried to fill this gap in the literature on corporate environmental responsibility.