Climate-Related Disclosure Commitment of the Lenders, Credit Rationing, and Borrower Environmental Performance
Using lenders becoming members of the Task Force on Climate-Related Financial Disclosures (TCFD) as a plausible exogeneous shock, we examine whether and how lenders’ commitment to transparent climate-related disclosures affects borrower firms’ environmental performance. We find that client firms of TCFD-member lenders, relative to control firms, significantly improve their environmental performance after the TCFD launch. The effects are stronger for polluting firms. Moreover, TCFD-member lenders influence their borrowers’ environmental performance via charging higher loan spread and reducing the number and amount of new loans issued to polluting firms. Finally, polluting clients of TCFD-member lenders experience tightened financial constraints subsequently
Year of publication: |
[2023]
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Authors: | Hasan, Iftekhar ; Lee, Haekwon ; Qiu, Buhui ; Saunders, Anthony |
Publisher: |
[S.l.] : SSRN |
Subject: | Kreditrationierung | Credit rationing | Theorie | Theory | Unternehmenspublizität | Corporate disclosure | Kreditgeschäft | Bank lending |
Saved in:
freely available
Extent: | 1 Online-Ressource (56 p) |
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Series: | Bank of Finland Research Discussion Paper ; No. 7/2023 |
Type of publication: | Book / Working Paper |
Language: | English |
Other identifiers: | 10.2139/ssrn.4430592 [DOI] |
Classification: | G21 - Banks; Other Depository Institutions; Mortgages ; G30 - Corporate Finance and Governance. General ; Q54 - Climate; Natural Disasters |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10014355208