Environmental Controversies on Business Risk in Energy Companies: Evidence of a Non‐Linear Relationship
研究了2016-2023年24国能源公司数据，发现环境争议与风险呈U型关系：适度争议因利益相关者监督而降低风险，严重争议则通过声誉损害等增加风险，并强调董事会特征（如性别多样性）的缓解作用。
ABSTRACT This study explores how environmental controversies affect corporate risk in the global energy sector, using data from companies in 24 countries between 2016 and 2023. By employing Altman's Z‐score, return on assets volatility, and earnings volatility, and applying a system GMM estimator, the analysis identifies a robust U‐shaped relationship between controversies and risk. Moderate controversy levels appear to reduce risk, likely because heightened stakeholder scrutiny encourages corrective governance and risk‐management practices. However, severe controversies increase risk through reputational damage, regulatory pressure, and heightened uncertainty. Grounded in legitimacy and signaling theories, the study demonstrates that the effect of environmental controversies on business risk is non‐linear and context dependent, particularly in environmentally sensitive industries. Additionally, results highlight the mitigating role of board characteristics, including gender diversity and expertise. For managers and investors, the findings underscore the importance of transparency, governance improvements, and institutional factors in ESG‐based risk assessments.