Loan Origination and Monitoring Guidelines: How Do ESG Indicators Affect Firms’ Probability of Default?

Egidio Palmieri, Enrico Fioravante Geretto () and Maurizio Polato ()
Additional contact information
Enrico Fioravante Geretto: University of Udine
Maurizio Polato: University of Udine

Chapter Chapter 4 in Creating Value and Improving Financial Performance, 2023, pp 59-84 from Palgrave Macmillan

Abstract: Abstract Considering the new paradigm expressed in EBA LOM guidelines, in this paper, we intend to answer the following research questions: (i) Are ESG factors capable of mitigating and reducing the probability of default of companies?; (ii) To what extent does ESG performance is correlated with a reduction in the likelihood of default?; (iii) Is the risk reduction effect differentiated for companies operating in different geographic areas?. To provide an answer to these research questions, a difference in difference analysis model was applied to a sample of 840 European and American listed companies with annual observations from 2000 to 2021: the data were collected on Bloomberg and Refinitiv DataStream.

Date: 2023
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:pmschp:978-3-031-24876-4_3

Ordering information: This item can be ordered from
http://www.palgrave.com/9783031248764

DOI: 10.1007/978-3-031-24876-4_3

Access Statistics for this chapter

More chapters in Palgrave Macmillan Studies in Banking and Financial Institutions from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().