The impact of environmental performance on credit ratings
(2023) NEKN01 20231Department of Economics
- Abstract
- This paper aims to investigate the relationship between environmental performance and credit ratings on the Asian, European, and North American market in the context of the ESG framework over a period of ten years through 2013-2022. Through the usage of primarily POLS and POLS with a fixed year effect model, 242 firms across the different regions are studied on an aggregate level, in terms of being consumer oriented and manufacturing intensive as well as on a regional level in order to explore said relationship. The findings speak in favor of better environmental performance leading to higher credit ratings, however what precise components of the environmental performance lead to this effect is shown to be circumstantial and vary across... (More)
- This paper aims to investigate the relationship between environmental performance and credit ratings on the Asian, European, and North American market in the context of the ESG framework over a period of ten years through 2013-2022. Through the usage of primarily POLS and POLS with a fixed year effect model, 242 firms across the different regions are studied on an aggregate level, in terms of being consumer oriented and manufacturing intensive as well as on a regional level in order to explore said relationship. The findings speak in favor of better environmental performance leading to higher credit ratings, however what precise components of the environmental performance lead to this effect is shown to be circumstantial and vary across industries and regions. The largest effects could be found for the manufacturing intensive industries, as well as for the North American region. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9117681
- author
- Brejwo, Marta Celina LU
- supervisor
- organization
- course
- NEKN01 20231
- year
- 2023
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- ESG, CSR, Environmental performance, Credit ratings, Credit risk
- language
- English
- id
- 9117681
- date added to LUP
- 2023-09-12 15:36:42
- date last changed
- 2023-09-12 15:36:42
@misc{9117681, abstract = {{This paper aims to investigate the relationship between environmental performance and credit ratings on the Asian, European, and North American market in the context of the ESG framework over a period of ten years through 2013-2022. Through the usage of primarily POLS and POLS with a fixed year effect model, 242 firms across the different regions are studied on an aggregate level, in terms of being consumer oriented and manufacturing intensive as well as on a regional level in order to explore said relationship. The findings speak in favor of better environmental performance leading to higher credit ratings, however what precise components of the environmental performance lead to this effect is shown to be circumstantial and vary across industries and regions. The largest effects could be found for the manufacturing intensive industries, as well as for the North American region.}}, author = {{Brejwo, Marta Celina}}, language = {{eng}}, note = {{Student Paper}}, title = {{The impact of environmental performance on credit ratings}}, year = {{2023}}, }