Conference Programme
Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available). Note that the schedule is subject to changes.
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Daily Overview |
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Parallel Session 05: Frictions in Corporate Sustainability Location: Seminar Room 6 (Level 2) Session Chair: Theodor Cojoianu, Singapore Management University. | |
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Internal Markets for Liability: Evidence from Medical Monitoring Claims 1: Deakin University, Australia; 2: Jinan University, China; 3: University of Michigan, USA We study how firms respond to increased environmental liability using their internal markets. We exploit the staggered adoption of Medical Monitoring Claims (MMCs) across U.S. states. MMCs allow plaintiffs exposed to hazardous substances to seek compensation for periodic medical examinations, even in the absence of physical injury. Using a difference-in-differences approach, we find that MMC adoption reduces the liable units’ toxic emissions by over 2%. The effect is larger for carcinogenic and airborne pollutants, and when chemicals are reclassified from non-carcinogenic to carcinogenic. These effects are driven by single-unit, single-state firms, whereas multi-unit, multi-state firms arbitrage and strategically adjust emissions. Finally, reductions in emissions within multi-unit firms are larger for units in counties with higher levels of civic engagement and for units with greater environmental capability. Our findings show the working of an internal market that facilitates regulatory arbitrage. | |