XF-4ROW5YW-H Corporate ESG profiles and banking relationships
Abstract
Abstract We show that banking relationships promote corporate environmental, social, and governance (ESG) policies. Specifically, banks are more likely to grant loans to borrowers with ESG profiles similar to their own and positively influence the borrower’s subsequent ESG performance. Their influence is more pronounced when (1) banks have significantly better ESG ratings than borrowers and (2) borrowers are bank dependent. We exploit M&A among lenders as a source of quasi-exogenous variation in the lender’s ESG standard to alleviate endogeneity concerns. Overall, our study presents the first evidence on the interplay between responsible bank lending and borrowers’ ESG behavior.
Source: resolved
Topics
Cited by (1)
Other RESEARCH documents in the registry that cite this work.
How to Cite This Record
Use the XFID in citations to create a stable, permanent reference that resolves to this registry entry regardless of the source URL.
Oxford University Press (OUP) (2022). Corporate ESG profiles and banking relationships. XFID: XF-4ROW5YW-H. Retrieved from https://xframework.id/XF4ROW5YWH
XF-4ROW5YW-H