Is ESG reporting informative to debtholders?— Evidence from a quasi-experiment in China

Dan Yang, Zhiyong Zhao and Liangliang Wang

Finance Research Letters, 2024, vol. 62, issue PA

Abstract: This paper relies on a quasi-experiment setting given by the differential ESG regulation in Chinese market to explore the attitude of different typed debtholders on corporate ESG reporting. We find enhanced ESG reporting triggered by the regulation is only informative to bondholders while adds no incremental information to banks. Further analysis reveals that bondholders pay close attention to environmental and governance dimensions but not social dimension. This study sheds light on the economic consequences of the recent hit ESG reporting and contributes to the literature on global finance and ESG regulation.

Keywords: ESG; Cost of debt; Bond issuance; Bank loans; China (search for similar items in EconPapers)
JEL-codes: G32 G35 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:62:y:2024:i:pa:s1544612324001302

DOI: 10.1016/j.frl.2024.105100

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