Quotation Halling, Michael, Yu, Jin, Zechner, Josef. 2020. Primary Corporate Bond Markets and Social Responsibility.


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Abstract

We document that good ES-performance is rewarded in primary bond markets by lower credit spreads. This effect is strongest for low-rated bonds and for firms in manufacturing, agriculture, mining and construction. However, not all ES-dimensions are equally important. The above results are driven mostly by the product-related dimension and to a lesser extent by the employee-related dimension. Environment-related aspects only seem to matter for those industries with largest exposure to environmental risks. Finally, we neither find that the above results are driven by crisis periods nor pronounced dynamics reflecting the growing interest in ESG. Overall, our evidence suggests that some ES-dimensions capture information that is relevant for default risk.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Working/discussion paper, preprint
Language English
Title Primary Corporate Bond Markets and Social Responsibility
Year 2020
URL http://ssrn.com/abstract=3681666
JEL G11, G12, G32, G34

Associations

People
Zechner, Josef (Details)
External
Halling, Michael (Stockholm School of Economics & Swedish House of Finance, Sweden)
Yu, Jin (Monash University, Australia)
Organization
Institute for Finance, Banking and Insurance IN (Details)
Research Institute for Capital Markets FI (Details)
Research areas (Ă–STAT Classification 'Statistik Austria')
5305 Bank management (Details)
5307 Business and management economics (Details)
5358 Corporate finances (Details)
5361 Financial management (Details)
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