Firm ESG reputation risk and debt choice-Reference-Cited by-同舟云学术

Firm ESG reputation risk and debt choice

Published:2023-11-08 Issue: Volume: Page:
ISSN:1354-7798
Container-title:European Financial Management
language:en
Short-container-title:Euro Fin Management

Author:

Newton David P.¹,Ongena Steven²,Xie Ru¹^ORCID,Zhao Binru³

Affiliation:

1. School of Management University of Bath Bath UK

2. Swiss Finance Institute, NTNU Business School, KU Leuven and CEPR University of Zurich Zürich Switzerland

3. Bangor Business School Bangor UK

Abstract

AbstractUsing a novel sample covering 3783 US public firms from 2007 to 2020, we examine how negative media coverage of firm‐level environmental, social, and governance (ESG) practices affects a firm's debt choice. We find that firms with higher ESG reputation risk rely more on public bond than bank loan. The social and governance components, in particular, matter. Moreover, firms that receive more negative news coverage display a higher propensity to issue new bonds as opposed to securing new bank debt. Overall, our study presents empirical evidence on the relation between firm ESG reputation risk and debt financing.

Publisher

Wiley

Subject

General Economics, Econometrics and Finance,Accounting

Link

https://onlinelibrary.wiley.com/doi/pdf/10.1111/eufm.12468

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