Discretionary related party transactions (also known as tunnelling or self-dealing transactions) are non-arms length transactions with related parties of controlling shareholders for private benefit at the cost of other shareholders. Though there are studies on discriminatory related party...

Carbon emissions and agency costs can have an impact on firms’ financial performance. However, limited attention has been paid to the combined and gradual effects of these two factors on firms’ performance. We explore the separate and combined effects of carbon emissions and agency costs on...

This research investigates the association between debt overhang and carbon emissions. We employ a sample of 2,043 U.S. firm-year observations over a period of 14 years from 2007 to 2020. Our findings reveal that the debt overhang problem increases carbon emissions. This finding holds when we...