This study examines whether poor air quality affects corporate debt cost. By employing a regression discontinuity design (RDD) based on the discontinuity of air pollution caused by the Qinling-Huaihe line in China, we found that poor air quality significantly raises the debt cost of firms after....

Based on China-listed firms, we investigate the relationship between air pollution and dividend payout. We document that air pollution promotes firms to pay higher dividends, and address the endogeneity by regression discontinuity design (RDD) and instrument variable (IV) regression....