Advanced Search
MyIDEAS: Login to save this article or follow this journal

Kyoto Protocol and capital structure: a comparative study of developed and developing countries

Contents:

Author Info

  • Naiwei Chen
  • Wan-Ting Wang
Registered author(s):

    Abstract

    This study examines the impact of the ratification of the Kyoto Protocol on the capital structure of nonfinancial firms in 45 countries from 2002 to 2007. Results show that in general, the Protocol ratification has a negative impact on the leverage of firms. Such negative impact is apparent in developed than in developing countries. Furthermore, this negative impact is reinforced by a market-based, as opposed to bank-based, financial system. Lastly, results suggest that the Protocol ratification has reduced agency costs for firms in developed as opposed to developing countries. Results provide policy implications. In general, firms in ratifying countries should reduce leverage in response to stricter climate-related regulations as they undergo transition toward becoming environment friendly. Such leverage reduction should be more pronounced in developed than in developing countries. Firms in ratifying countries with market-based financial system should reduce leverage more than those in ratifying countries with bank-based financial system should. Finally, results suggest that it is beneficial for developed countries to commit to becoming environmentally liable by joining the global effort to combat climate change because the Protocol ratification appears to mitigate agency problems for firms in developed countries.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://hdl.handle.net/10.1080/09603107.2012.676732
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Applied Financial Economics.

    Volume (Year): 22 (2012)
    Issue (Month): 21 (November)
    Pages: 1771-1786

    as in new window
    Handle: RePEc:taf:apfiec:v:22:y:2012:i:21:p:1771-1786

    Contact details of provider:
    Web page: http://www.tandfonline.com/RAFE20

    Order Information:
    Web: http://www.tandfonline.com/pricing/journal/RAFE20

    Related research

    Keywords:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:taf:apfiec:v:22:y:2012:i:21:p:1771-1786. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.