Green links: Corporate networks and environmental performance
(2023) In Review of Finance- Abstract
- We investigate the propagation of environmental performance among competitors and in customer–supplier relationships. We find causal effect among competitors, while the propagation from customers to suppliers and vice versa appears insignificant or does not survive identification tests. The effect is stronger among firms in highly concentrated competitor networks and towards firms with less market and bargaining power than their competitors. We also find significantly stronger propagation of environmental performance among competitors engaged in joint research and development activity. These results show that the propagation stems from both competitive pressure and technological spillover. Importantly, we find that propagation is strong... (More)
- We investigate the propagation of environmental performance among competitors and in customer–supplier relationships. We find causal effect among competitors, while the propagation from customers to suppliers and vice versa appears insignificant or does not survive identification tests. The effect is stronger among firms in highly concentrated competitor networks and towards firms with less market and bargaining power than their competitors. We also find significantly stronger propagation of environmental performance among competitors engaged in joint research and development activity. These results show that the propagation stems from both competitive pressure and technological spillover. Importantly, we find that propagation is strong when the competitor improves its environmental performance and when the firm’s own environmental performance is poor initially, alleviating concerns that improvements in performance are concentrated among firms, which are already green. Overall, network effects among competing firms are a significant force shaping environmental performance, and a force mostly for good. (Less)
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/72cb44a5-bd0e-48b9-b417-bc87fc17781d
- author
- Asgharian, Hossein LU ; Dzielinski, Michal ; Liu, Lu LU and Hashemzadeh, Zahra LU
- organization
- publishing date
- 2023-12-05
- type
- Contribution to journal
- publication status
- in press
- subject
- in
- Review of Finance
- pages
- 54 pages
- publisher
- Oxford University Press
- ISSN
- 1572-3097
- language
- English
- LU publication?
- yes
- id
- 72cb44a5-bd0e-48b9-b417-bc87fc17781d
- date added to LUP
- 2023-12-13 17:16:53
- date last changed
- 2023-12-14 10:26:20
@article{72cb44a5-bd0e-48b9-b417-bc87fc17781d,
abstract = {{We investigate the propagation of environmental performance among competitors and in customer–supplier relationships. We find causal effect among competitors, while the propagation from customers to suppliers and vice versa appears insignificant or does not survive identification tests. The effect is stronger among firms in highly concentrated competitor networks and towards firms with less market and bargaining power than their competitors. We also find significantly stronger propagation of environmental performance among competitors engaged in joint research and development activity. These results show that the propagation stems from both competitive pressure and technological spillover. Importantly, we find that propagation is strong when the competitor improves its environmental performance and when the firm’s own environmental performance is poor initially, alleviating concerns that improvements in performance are concentrated among firms, which are already green. Overall, network effects among competing firms are a significant force shaping environmental performance, and a force mostly for good.}},
author = {{Asgharian, Hossein and Dzielinski, Michal and Liu, Lu and Hashemzadeh, Zahra}},
issn = {{1572-3097}},
language = {{eng}},
month = {{12}},
publisher = {{Oxford University Press}},
series = {{Review of Finance}},
title = {{Green links: Corporate networks and environmental performance}},
year = {{2023}},
}