Do Banks Value Borrowers' Environmental Record? Evidence from Financial Contracts

被引:25
|
作者
Chen, I-Ju [1 ]
Hasan, Iftekhar [2 ,3 ]
Lin, Chih-Yung [4 ]
Nguyen, Tra Ngoc Vy [5 ]
机构
[1] Yuan Ze Univ, Coll Management, Taoyuan, Taiwan
[2] Fordham Univ, Bank Finland, 45 Columbus Ave,5th Floor, New York, NY 10023 USA
[3] Univ Sydney, 45 Columbus Ave,5th Floor, New York, NY 10023 USA
[4] Natl Chiao Tung Univ, Dept Informat Management & Finance, Hsinchu, Taiwan
[5] Quy Nhon Univ, Fac Econ & Accounting, Quy Nhon, Vietnam
关键词
Chemical emissions; Pollution record; Bank sustainability performance; Corporate governance; Business ethics; CORPORATE SOCIAL-RESPONSIBILITY; AGENCY COSTS; CASH FLOW; DEBT; RISK; INFORMATION; PERFORMANCE; VOLATILITY; GOVERNANCE; INSTITUTIONS;
D O I
10.1007/s10551-020-04621-2
中图分类号
F [经济];
学科分类号
02 ;
摘要
Banks play a unique role in society. They not only maximize profits but also consider the interests of stakeholders. We investigate whether banks consider firms' pollution records in their lending decisions. The evidence shows that banks offer significantly higher loan spreads, higher total borrowing costs, shorter loan maturities, and greater collateral to firms with higher levels of chemical pollution. The costly effects are stronger for borrowers with greater risk and weaker corporate governance. Further, the results show that banks with higher social responsibility account for their borrowers' environmental performance and charge higher loan spreads to those with poor performance. These results support the idea that banks with higher social responsibility can promote the practice of business ethics in firms.
引用
收藏
页码:687 / 713
页数:27
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