Previous empirical studies primarily examine the effects of a company’s ESG performance from an equity perspective or a shareholder value orientation. More recent studies are increasingly focusing on the relationship between ESG and the cost of capital, or from a risk perspective. The existing evidence reveals a gap in results related to both the cost of debt and debt-related risks, namely credit risk. Derived from this need for research, the state of the art regarding ESG and credit risk is presented.

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ESG and Credit Risk

  • Anna Gappmaier

摘要

Previous empirical studies primarily examine the effects of a company’s ESG performance from an equity perspective or a shareholder value orientation. More recent studies are increasingly focusing on the relationship between ESG and the cost of capital, or from a risk perspective. The existing evidence reveals a gap in results related to both the cost of debt and debt-related risks, namely credit risk. Derived from this need for research, the state of the art regarding ESG and credit risk is presented.