Publicação
The impact of sustainability efforts on companies' cost of debt: evidence from Europe and the US
| Resumo: | Adopting sustainable practices and responsible resource use is a pressing challenge involving the global economy, companies, and the financial sector. This study examines whether sustainability affects corporate borrowing costs and the rationale for banks to apply stricter sustainability criteria. Using multiple regressions, it analyzes ESG scores’ influence on borrowing costs in European markets, compares them with the US market, and considers industry-specific and sectoral differ ences. Results show ESG scores generally reduce the cost of debt, though this effect strongly de pends on sector and region. Future research here could focus on regulatory influences and provide deeper, sector-level insights into ESG-cost relationships. |
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| Autores principais: | Gundlach, Max |
| Assunto: | Cost of debt ESG-ratings ESG-pillars Industry & Sector Differences Cross country differences |
| Ano: | 2025 |
| País: | Portugal |
| Tipo de documento: | dissertação de mestrado |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Universidade Nova de Lisboa |
| Idioma: | inglês |
| Origem: | Repositório Institucional da UNL |
| Resumo: | Adopting sustainable practices and responsible resource use is a pressing challenge involving the global economy, companies, and the financial sector. This study examines whether sustainability affects corporate borrowing costs and the rationale for banks to apply stricter sustainability criteria. Using multiple regressions, it analyzes ESG scores’ influence on borrowing costs in European markets, compares them with the US market, and considers industry-specific and sectoral differ ences. Results show ESG scores generally reduce the cost of debt, though this effect strongly de pends on sector and region. Future research here could focus on regulatory influences and provide deeper, sector-level insights into ESG-cost relationships. |
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