This study investigates the two-way relationship between corporate environmental performance (EP) and corporate financial performance (FP). The relationship between EP and FP remains ambiguous after decades of study. To contribute to the ongoing debate, we estimate a system of dynamic equations simultaneously by deploying structural equation modeling (SEM).
The main aim of the study is to identify some critical microeconomic determinants of financial distress and to design a parsimonious distress prediction model for an emerging economy like India. In doing so, the authors also attempt to compare the forecasting accuracy of alternative distress prediction techniques.
The paper exploits a panel quantile regression technique to uncover the asymmetric impact of material Environmental, Social, and Governance (ESG) ratings on conditional quantiles of US corporate bond spreads. I highlight the contrasting effects of ESG on credit risk for brown and green sectors, shedding light on how each is uniquely impacted by ESG factors, ultimately informing better investment strategies, corporate decision-making, and policy formulation.
This study examines whether banks penalise ESG washing behaviour of borrowers in the energy sector in their syndicate loan contract decisions related to the price and the size of loans issued.