ESG and corporate credit spreads

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Details zur Publikation

Autorinnen und Autoren: Barth F, Hübel B, Scholz H
Jahr der Veröffentlichung: 2019
Sprache: Englisch


Abstract

This study examines how credit default swap (CDS) spreads of European firms are
related to their environmental, social, and governance (ESG) performance. After controlling
for common determinants of CDS spreads, our results indicate that firms with
the worst environmental performance exhibit 25 basis points higher credit spreads while
the remaining firms share similar CDS spreads. This could be due to environmentalfriendly
business practices resulting in lower firm risk. The opposite seems to apply to
social performance. Here, 22 basis points higher credit spreads of rms fiwith the best social
performance could indicate a waste of valuable resources leading to higher firm risk.
Finally, governance does not seem to be an additional determinant of credit spreads.
Overall, investors may improve their assessment and management of credit risk when
considering environmental and social performances of firms.


FAU-Autorinnen und Autoren / FAU-Herausgeberinnen und Herausgeber

Barth, Florian
Lehrstuhl für Betriebswirtschaftslehre, insbesondere Finanzierung und Banken
Hübel, Benjamin
Lehrstuhl für Betriebswirtschaftslehre, insbesondere Finanzierung und Banken
Scholz, Hendrik Prof. Dr.
Lehrstuhl für Betriebswirtschaftslehre, insbesondere Finanzierung und Banken


Zitierweisen

APA:
Barth, F., Hübel, B., & Scholz, H. (2019). ESG and corporate credit spreads.

MLA:
Barth, Florian, Benjamin Hübel, and Hendrik Scholz. ESG and corporate credit spreads. 2019.

BibTeX: 

Zuletzt aktualisiert 2019-12-04 um 16:38