No abstract

Our study of 267 U.S. firms shows that improved environmental risk management is associated with a lower cost of capital. Our findings provide an alternative perspective on the environmental‐economic performance relationship, which has been dominated by the view that improvements in economic performance stem from better resource utilization. Firms also benefit from improved environmental risk management through a reduction in their cost of equity capital, a shift from equity to debt financing, and higher tax benefits associated with the ability to add debt. These findings help build better theory regarding the outcomes of strategic improvements in environmental risk management. Copyright © 2008 John Wiley & Sons, Ltd.

No abstract

Using institutional theory as the foundation, this study examines the role of organizational visibility from a variety of sources (i.e., slack visibility, industry visibility, and visibility

ABSTKACTDespite the central place of rationality in the organization theory, strategic management, and decision-making literatures, we know relatively little about why some strategic decision-making procedures are more rational than others. This question was addressed in a study of 57 strategic decisions in 24 companies, using a multiple-informant, structured interview protocol. Results indicate that environmental competitive threat, perceived external control of the organization, and the uncertainty of the strategic issues being addressed are related to procedural rationality. Surprisingly, some of these relationships were in the opposite direction from our predictions. These results are interpreted within a framework that emphasizes the link between procedural rationality and managerial discretion. Addres.r , f i r Re@rint,r: Jamcs W. Dean .Jr., College of Business Administration, University of' Cincinnati, Cincinnati, OH 45221-0165, USA. 0 Basil Blackwell Ltd 1993. Publishrd by Rlarkwrll Publishers, 108 Cowley Road, Oxford OX4 lJF, lJK and 238 Main Street, Cambridge, h1.4 0121.12. USA