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H2b: The depreciation and amortization expenses of a more Green company will be increasing relative to a less Green company.

It is assumed that Green companies will need to incur significant capital expenditures in order to be Green and obtain the future benefits. These capital expenditures in facilities and intellectual property will result in higher depreciation and amortization expenses in the future periods. Therefore

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H2b: The depreciation and amortization expenses of a more Green company will be increasing relative to a less Green company.

It is assumed that Green companies will need to incur significant capital expenditures in order to be Green and obtain the future benefits. These capital expenditures in facilities and intellectual property will result in higher depreciation and amortization expenses in the future periods. Therefore

we expect Green companies will have a higher growth in their depreciation and amortization expenses relative to the less Green companies. Extending the rationale provided above

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