The Role of G(overnment) in Corporate ESG Policies
33 Pages Posted: 22 Nov 2022
Nickolay Gantchev
University of Warwick - Warwick Business School; Centre for Economic Policy Research (CEPR); European Corporate Governance Institute (ECGI)
Jim Goldman
University of Warwick - Warwick Business School
Shu Zhang
Exeter Business School
Date Written: November 18, 2022
Abstract
We study how the allocation of federal contracts influences the sustainability of corporate policies. We find that a firm’s poor record of environmental and social (E&S) incidents is associated with losing government contracts and facing worse contract terms. ‘Punished’ contractors improve their E&S policies in subsequent years and their government business gets reallocated to other firms with lower information asymmetry. These effects are substantially stronger for small, women-owned, and minority-owned businesses. Our results indicate that federal procurement plays not only a disciplining role in improving firms’ E&S policies, but also a distributive role in creating opportunities for disadvantaged businesses.
Keywords: Government contracts, ESG, Sustainability, Corporate governance, Firm diversity
JEL Classification: G34, G38, H57, M14
Suggested Citation: Suggested Citation
Nickolay Gantchev (Contact Author)
University of Warwick - Warwick Business School ( email )
Coventry CV4 7AL
United Kingdom
HOME PAGE: http://www.NickolayGantchev.com
Centre for Economic Policy Research (CEPR) ( email )
London
United Kingdom
HOME PAGE: http://cepr.org
European Corporate Governance Institute (ECGI) ( email )
HOME PAGE: http://ecgi.global/users/nickolay-gantchev
Jim Goldman
University of Warwick - Warwick Business School ( email )
Coventry CV4 7AL
United Kingdom
Do you have negative results from your research you’d like to share?
Related eJournals
-
Corporate Finance: Governance, Corporate Control & Organization eJournal
Corporate Finance: Governance, Corporate Control & Organization eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS3,247PAPERS34,018This Journal is curated by:René M. Stulz at Ohio State University (OSU) - Department of Finance -
Corporate Governance & Finance eJournal
Corporate Governance & Finance eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS1,468PAPERS15,686This Journal is curated by:Lucian A. Bebchuk at Harvard Law School -
Public Economics: National Government Expenditures & Related Policies eJournal
Public Economics: National Government Expenditures & Related Policies eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS1,251PAPERS2,459 -
Political Economy: Government Expenditures & Related Policies eJournal
Political Economy: Government Expenditures & Related Policies eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS1,141PAPERS19,019 -
Corporate Governance: Economic Consequences, History, Development, & Methodology eJournal
Corporate Governance: Economic Consequences, History, Development, & Methodology eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS833PAPERS2,706This Journal is curated by:Lucian A. Bebchuk at Harvard Law School -
Women & Work eJournal
Subscribe to this free journal for more curated articles on this topic
FOLLOWERS830PAPERS3,399 -
Corporate Social Responsibility (CSR) eJournal
Corporate Social Responsibility (CSR) eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS824PAPERS13,231This Journal is curated by:Timothy M. Devinney at The University of Manchester - Alliance Manchester Business School -
Demographics, Gender & Diversity in Accounting eJournal
Demographics, Gender & Diversity in Accounting eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS809PAPERS667 -
Investment & Social Responsibility eJournal
Investment & Social Responsibility eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS673PAPERS1,005This Journal is curated by:Timothy M. Devinney at The University of Manchester - Alliance Manchester Business School -
Environmental Economics eJournal
Environmental Economics eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS633PAPERS22,469 -
Socially Responsible Investment eJournal
Socially Responsible Investment eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS625PAPERS18,406 -
Environmental, Social & Governance (ESG) Research Hub eJournal
Environmental, Social & Governance (ESG) Research Hub eJournal
Subscribe to this free journal for more curated articles on this topic
FOLLOWERS363PAPERS3,224 -
Other Accounting Research eJournal
Other Accounting Research eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS355PAPERS2,389 -
Public Procurement, Government Contracts & Outsourcing eJournal
Public Procurement, Government Contracts & Outsourcing eJournal
Subscribe to this free journal for more curated articles on this topic
FOLLOWERS174PAPERS567This Journal is curated by:Jessica Tillipman at George Washington University - Law School, Steven L. Schooner at George Washington University - Law School -
Consumer Legal & Oversight eJournal
Consumer Legal & Oversight eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS109PAPERS909 -
Comparative Political Economy: Fiscal Policy eJournal
Comparative Political Economy: Fiscal Policy eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS62PAPERS7,717This Journal is curated by:Yusaku Horiuchi at Affiliation not provided to SSRN -
Political Economy - Development: Environment eJournal
Political Economy - Development: Environment eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS52PAPERS20,583