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Impact of Environmental Responsibility Expenditures on Corporate Bankruptcy Risks of Italian Companies

Student: Anastasia Piskunova

Supervisor: Ekaterina A. Makarova

Faculty: Faculty of World Economy and International Affairs

Educational Programme: World Economy (Bachelor)

Year of Graduation: 2017

In the modern world, the problem of environmental degradation is becoming increasingly important: the constant depletion of the ozone layer, the threat of global warming, climate change and other environmental consequences are the result of active economic activity, especially activities of companies. Thus, the concept of Corporate Environmental Responsibility (CER) is becoming a source of competitive advantage for enterprises, especially for Italian companies, activities that have recently been increasingly focused on improving the environmental friendliness of production and their products. Nevertheless, the issue of the impact of CER on the functioning of the company, namely, the relationship between the degree of environmental responsibility and the financial well-being of the company remains open. In this direction, a lot of quantitative and qualitative scientific research has been carried out, but their results remain ambiguous and often contradictory. The purpose of the work is to determine the impact of costs on corporate environmental responsibility on the dynamics of the risk of bankruptcy of Italian companies.

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