Incorporation of Environmental Risks into Corporate Financing

This study analyzes the relationship between corporatefinancial and environmental performance from the aspect ofentrepreneurial decision-making with regard to investment andfinancing. With the help of the shareholder value model, this studyfirst reveals the interdependency between operation decision,investment decision and financing decision. This interactionbetween the financing decision and the corporate investmentdecision is regarded as the research object in this study, which isexpanded in three research modules constructed. The first twomodules are concerned with the incorporation of environmentalconcerns in the two main external financing modes: debt-financingand equity-financing. The third research module articulates theinterdependency between investment and financing decisions from theaspect of entrepreneurs. Shareholder theory, Stakeholder theory,transaction cost economics, modern financial theory, agency theory,slack resource theory and resource-based view of the firm areapplied as arguments to explain the interaction betweenentrepreneurs and capital suppliers by taking corporateenvironmental performance into consideration.

Klappentext
This study analyzes the relationship between corporate financial and environmental performance from the aspect of entrepreneurial decision-making with regard to investment and financing. With the help of the shareholder value model, this study first reveals the interdependency between operation decision, investment decision and financing decision. This interaction between the financing decision and the corporate investment decision is regarded as the research object in this study, which is expanded in three research modules constructed. The first two modules are concerned with the incorporation of environmental concerns in the two main external financing modes: debt-financing and equity-financing. The third research module articulates the interdependency between investment and financing decisions from the aspect of entrepreneurs. Shareholder theory, Stakeholder theory, transaction cost economics, modern financial theory, agency theory, slack resource theory and resource-based view of the firm are applied as arguments to explain the interaction between entrepreneurs and capital suppliers by taking corporate environmental performance into consideration.