ESG Activities and Firm Cash Flow
Document Type
Article
Publication Date
5-1-2022
Description
I measure the influence of ESG activities on Free Cash flow to the Firm and Free Cash Flow to Equity. I find that ESG activities primarily benefit the cash flows to creditors of firms in developed markets. The ESG effect predominantly comes from the excess spending of the firm on communicating how it integrates the economic (financial), social and environmental dimensions into its day-to-day decision-making processes. For developed market firms, the additional factor of excess spending on conditions for the workforce plays a role in boosting Free Cash Flow to the Firm.
Citation Information
Gregory, Richard Paul, "ESG Activities and Firm Cash Flow" (2022). ETSU Faculty Works. 485.
https://dc.etsu.edu/etsu-works-2/485