What is the differential impact of corporate environmental liabilities on the short-term profitability vs. long-term financial outcomes of publicly listed firms in the U.S.?

Gianinazzi, VirginiaEngelhardt, Katharina Ingeborg Tamara2026-03-132026-03-132025-01-222025-01-21http://hdl.handle.net/10362/201392This study examines the financial impact of corporate environmental liabilities on publicly listed companies in the U.S. It analyses the long-term impact on revenue and EBIT using a fixed-effects panel regression and the short-term impact on stock returns using an event study. The findings reveal a statistically significant negative long-term impact of penalties on revenue, indicating that the financial consequences are driven primarily by reputational damage rather than a direct effect on profitability (as measured by EBIT). No statistically significant short term impact on stock returns was observed. Furthermore, additional perspectives across different types of violations, industries and company sizes offer further insights into the topic.engCorporate environmental iabilitiesEnvironmental violationViolation trackerFinancial impactWhat is the differential impact of corporate environmental liabilities on the short-term profitability vs. long-term financial outcomes of publicly listed firms in the U.S.? – a deep dive across industriesmaster thesis204132100