タイトル(掲載誌)Discussion Papers In Economics And Business
一般注記This study develops a real options model in which a firm invests in either a sustainable project or an unsustainable project. The sustainable project requires a high investment cost and yields cash flows perpetually, whereas the unsustainable project requires a low investment cost and yields cash flows until a random maturity. The random termination of cash flows reflects the project’s environmental, social, and governance (ESG) risk. In the model, the optimal investment choice and timing are analytically derived, and the effects of key parameters on the choice are also examined. Higher ESG risk, growth rate, and volatility, and lower discount rate encourage sustainable investing mainly through their impacts on the net present value (NPV) and timing option value. The less sustainable firm chooses higher leverage to enjoy a greater benefit of debt financing. Therefore, access to debt financing and a higher corporate tax rate (tax shield) discourage sustainable investing.
連携機関・データベース国立情報学研究所 : 学術機関リポジトリデータベース(IRDB)(機関リポジトリ)