Saharti, Mohammed, Saeed, Asif, Chaudhry, Sajid M. and Nasir, Muhammad Ali (2024). Lending Relationships of Firms for a Just Transition. European Financial Management ,
Abstract
This paper examines lending dynamics for firms aiming for a “just transition”. Analyzing 37,426 firm‐year observations from DealScan and Refinitiv's environmental, social and governance (ESG) transition data (2002–2021), we find that lenders offer lower interest rates to firms with prior relationships and strong ESG commitments, particularly environmental ones. While environmental factors receive favourable treatment, economic and governance transitions are less prioritized. Lenders tend to form more dispersed syndicates when supporting firms focused on ESG transitions, especially environmental ones. This research highlights the uneven focus within ESG transitions and emphasizes the underexamined area of governance, providing insights into lending relationships.
Publication DOI: | https://doi.org/10.1111/eufm.12535 |
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Divisions: | College of Business and Social Sciences > Aston Business School > Economics, Finance & Entrepreneurship College of Business and Social Sciences > Aston Business School Aston University (General) |
Additional Information: | Copyright © 2024 John Wiley & Sons Ltd. This is the peer reviewed version of the following article: 'Saharti, M., Saeed, A., Chaudhry, S.M. and Nasir, M.A. (2024), Lending Relationships of Firms for a Just Transition. European Financial Management', which has been published in final form at https://doi.org/10.1111/eufm.12535. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archived Versions. |
Uncontrolled Keywords: | ESG,financing arrangement,interest rate,just transition,sustainability,Accounting,General Economics,Econometrics and Finance |
Publication ISSN: | 1468-036X |
Last Modified: | 26 Mar 2025 08:13 |
Date Deposited: | 13 Jan 2025 16:41 |
Full Text Link: | |
Related URLs: |
https://onlinel ... 1111/eufm.12535
(Publisher URL) http://www.scop ... tnerID=8YFLogxK (Scopus URL) |
PURE Output Type: | Article |
Published Date: | 2024-12-12 |
Published Online Date: | 2024-12-12 |
Accepted Date: | 2024-11-13 |
Authors: |
Saharti, Mohammed
Saeed, Asif Chaudhry, Sajid M. ( ![]() Nasir, Muhammad Ali |
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License: Creative Commons Attribution Non-commercial No Derivatives