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The Real Effects of Green Corporate Restructuring
Jehoon Chung 고려대학교 대학원 2023 국내석사
This paper examines the mechanisms and consequences of environmentally motivated asset sales. Using a sample of 4,879 U.S. plants reported by the Environmental Protection Agency (EPA) from 2011 to 2020, my study finds robust evidence that plants owned by environmentally risky firms under heightened regulatory stringency are 5 to 11 percentage points more likely to be sold. This effect is pronounced in emission-intensive plants that are associated with financially constrained firms, state enforcements, and low divestiture costs. Furthermore, selling firms enjoy higher compensations in firm value and operating performance compared to non-selling firms, while I find no evidence of agency or greenwashing motives in plant sales. On the other hand, sold plants tend to deteriorate workplace safety, employee health, and abatement efforts, which translates to aggravated local sustainability conditions.