Saharti, M., Saeed, A., Chaudhry, S.M. et al. (1 more author) (2024) Lending Relationships of Firms for a Just Transition. European Financial Management. ISSN 1354-7798
Abstract
This paper examines lending dynamics for firms aiming for a “just transition”. Analyzing 37,426 firm-year observations from DealScan and Refinitiv's environmental, social and governance (ESG) transition data (2002–2021), we find that lenders offer lower interest rates to firms with prior relationships and strong ESG commitments, particularly environmental ones. While environmental factors receive favourable treatment, economic and governance transitions are less prioritized. Lenders tend to form more dispersed syndicates when supporting firms focused on ESG transitions, especially environmental ones. This research highlights the uneven focus within ESG transitions and emphasizes the underexamined area of governance, providing insights into lending relationships.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | This is an author produced version of an article published in European Financial Management, made available under the terms of the Creative Commons Attribution License (CC BY), which permits unrestricted use, distribution and reproduction in any medium, provided the original work is properly cited. |
Keywords: | ESG, financing arrangement, interest rate, just transition, sustainability |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Economics Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 26 Nov 2024 15:43 |
Last Modified: | 10 Jan 2025 13:24 |
Status: | Published online |
Publisher: | Wiley |
Identification Number: | 10.1111/eufm.12535 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:220012 |