When green meets green

Hans Degryse, Roman Goncharenko, Carola Theunisz and Tamas Vadasz

Journal of Corporate Finance, 2023, vol. 78, issue C

Abstract: We investigate whether and how the environmental consciousness (greenness for short) of firms and banks is reflected in the pricing of bank credit. Using a large international sample of syndicated loans over the period 2011–2019, we find that green banks indeed reward firms for being green in the form of cheaper loans—however, only after the ratification of the Paris Agreement in 2015. Such loans are also more likely term loans, with fewer covenants and reflect firms' project choices. Thus, we find that environmental attitudes matter “when green meets green.”

Keywords: Paris agreement; Green firms; Green banks; Bank lending (search for similar items in EconPapers)
JEL-codes: A13 G21 Q51 Q58 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (35)

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Related works:
Working Paper: When Green Meets Green (2021)
Working Paper: When green meets green (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:corfin:v:78:y:2023:i:c:s0929119923000044

DOI: 10.1016/j.jcorpfin.2023.102355

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