We investigate the association between firm-level political risk and environmental performance in U.S. firms during the period 2004–2018. We find a negative impact of political risk on overall environmental performance and its three components (a) carbon emissions reduction; (b) production innovation; and (c) resource reduction. Our findings remain robust when we employ firm fixed-effects, propensity score-matching estimates and the instrumental variable approach to address potential endogeneity concerns. The channel analysis shows that firms with high political risk face higher cash flow volatility and higher default risk, which lead to lower environmental performance.

中文翻译：

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企业政治风险与环境绩效

我们调查了 2004 年至 2018 年期间美国企业的企业层面政治风险与环境绩效之间的关联。我们发现政治风险对整体环境绩效及其三个组成部分产生负面影响（a）减少碳排放； (b) 生产创新； (c) 资源减少。当我们采用固定效应、倾向得分匹配估计和工具变量方法来解决潜在的内生性问题时，我们的研究结果仍然稳健。渠道分析表明，政治风险较高的企业面临较高的现金流波动性和较高的违约风险，从而导致环境绩效较低。