TY - JOUR
T1 - Can Banks Save Mountains?
AU - Haushalter, David
AU - Henry, Joseph J.
AU - Iliev, Peter
N1 - Publisher Copyright:
© 2023 The Author(s). Published by Oxford University Press on behalf of The Society for Financial Studies. All rights reserved.
PY - 2023/11/1
Y1 - 2023/11/1
N2 - We study bank policies to limit lending to companies engaged in mountaintop removal (MTR) coal mining, a form of coal extraction that has raised many environmental concerns. Using the staggered introduction of these policies, we document that these policies did not lead to meaningful changes in average bank lending or MTR mining. However, larger banks, banks that are under media pressure, and banks operating in the affected states are more likely to reduce MTR loans. Our results are consistent with the hypothesis that banks announced these policies under pressure and to improve their green credentials. (JEL G21, G28, G32) Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online.
AB - We study bank policies to limit lending to companies engaged in mountaintop removal (MTR) coal mining, a form of coal extraction that has raised many environmental concerns. Using the staggered introduction of these policies, we document that these policies did not lead to meaningful changes in average bank lending or MTR mining. However, larger banks, banks that are under media pressure, and banks operating in the affected states are more likely to reduce MTR loans. Our results are consistent with the hypothesis that banks announced these policies under pressure and to improve their green credentials. (JEL G21, G28, G32) Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online.
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U2 - 10.1093/rcfs/cfad013
DO - 10.1093/rcfs/cfad013
M3 - Article
AN - SCOPUS:85175522982
SN - 2046-9128
VL - 12
SP - 761
EP - 791
JO - Review of Corporate Finance Studies
JF - Review of Corporate Finance Studies
IS - 4
ER -