Chen, I‐Ju
[Verfasser:in]
;
Hasan, Iftekhar
[Sonstige Person, Familie und Körperschaft];
Lin, Chih-Yung
[Sonstige Person, Familie und Körperschaft];
Nguyen, Tra Ngoc Vy
[Sonstige Person, Familie und Körperschaft]
Do Banks Value Borrowers' Environmental Record? Evidence from Financial Contracts
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments July 1, 2018 erstellt
Beschreibung:
This paper investigates whether firms' pollution records influence their financing costs. Evidence shows that lending banks demand significantly higher loan spreads, higher total borrowing costs, shorter loan maturities, smaller loan sizes, and greater collateral from firms with higher levels of chemical releases. The costly effects are stronger for firms with higher default risk and weaker corporate governance. Additonal results show that polluting firms face higher future stock volatility. This evidence supports the view that banks consider firms' chemical releases when they make lending decisions