Organizational change inevitably involves uncertainty and hence
some risk taking. Tests the relationship between organizational slack
and risk taking in organization decision making, and thus provides some
evidence on the role or organizational variables in risk‐taking
behaviour. Product pricing strategies are identified and characterized
with respect to risk. Organizational slack is measured using various
financial variables. Results indicate that firms which have increases in
organizational slack prior to the introduction of new products are more
likely to adopt a higher risk product pricing strategy. Also discusses
implications regarding the measurement of slack using financial
variables.
This study examines the joint effect of carbon disclosure and greenhouse gas (GHG) emissions on firms’ implied cost of equity capital (COC). Based on 4655 firm‐year observations across 34 countries, we find firms’ GHG emission intensity to be positively associated with COC. However, we find also that the penalty linked with higher COC is moderated by extensive carbon disclosure. We provide evidence that the extent of carbon disclosure helps reduce the premium required by investors to compensate for poor carbon performance. Our study provides insights to policymakers, investors and managers on the combined effect of carbon disclosure, and emission intensity.
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