CSR and Environment Flashcards
What is shareholder activism?
Efforts by shareholders to influence firm strategies
What was the Boardroom Accountability Project?
A pension fund initiative targeting carbon-intensive firms
What methodology did Naaraayanan et al use?
Propensity score-matched difference-in-differences
What was the result of pension fund activism?
Emissions dropped by 13% in targeted firms
What was the main mechanism for reduced emissions?
Increased investment in abatement technologies
What is hedge fund activism?
Efforts by hedge funds to enhance firm efficiency and profitability
What was the impact of hedge fund activism on emissions?
Reduced toxic emissions primarily by lowering production
What data sources were used to study emissions?
EPA Toxic Release Inventory and Pollution Prevention databases
What was the main finding regarding hedge funds and environment?
Firms targeted by hedge funds reduced emissions post-campaign
Why is the causality of activism results questioned?
Non-random selection of underperforming firms
What is the alternative explanation for reduced emissions?
Reduced production due to poor firm performance
What did fixed effects control for in the study?
Regional and sectoral trends, production technology differences
What is the challenge in measuring CSR activism?
Distinguishing intentional effects from side-effects
How does shareholder value relate to emissions reductions?
Efficiency improvements may align with environmental goals
What are open questions in CSR activism?
The longevity of impacts and applicability to other CSR areas
