ESG ratings and credit ratings
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Keywords
ESG ratings ; Credit ratings ; Corporate sustainability ; ESG (Environmental, Social, Governance)Abstract
In this study, I examine the relationship between environmental, social, and governance (ESG) performance and firms' credit risk. In addition, I investigate which pillar of ESG influences this relationship. The research starts with a review of the asymmetric information issues and the rating assignments used by the economic participants to deal with these problems. I point out the determinants of the credit ratings and highlight the weaknesses in the definition and measurement of the ESG. The presentation of the relationship between ESG ratings and a firm’s financial performance completes the literature review. Using a sample of 600 firms during the period from 2002 to 2020, I find that ESG ratings are positively related to corporate credit ratings, but only social performance contributes to this relationship.
Postgraduate Studies Programme
Χρηματοοικονομική και Τραπεζική με ειδίκευση στη Χρηματοοικονομική και Τραπεζική ΔιοικητικήDepartment
Σχολή Χρηματοοικονομικής και Στατιστικής. Τμήμα Χρηματοοικονομικής και Τραπεζικής ΔιοικητικήςNumber of pages
90Language
English
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Αναφορά Δημιουργού-Μη Εμπορική Χρήση-Όχι Παράγωγα Έργα 3.0 Ελλάδα
Αναφορά Δημιουργού-Μη Εμπορική Χρήση-Όχι Παράγωγα Έργα 3.0 Ελλάδα