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The impact of environmental performance on credit ratings

Brejwo, Marta Celina LU (2023) NEKN01 20231
Department 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)
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author
Brejwo, Marta Celina LU
supervisor
organization
course
NEKN01 20231
year
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}},
}