The Effect of Environmental, Social, and Governance Performance Factors on Firms' Cost of Debt: International Evidence

被引：28
作者：
Houqe, Muhammad Nurul [1 ]
Ahmed, Kamran [2 ]
Richardson, Grant [3 ]
机构：
[1] Massey Univ, Massey Business Sch, Sch Accountancy, Palmerston North, New Zealand
[2] La Trobe Univ, La Trobe Business Sch, Melbourne, Vic, Australia
[3] Macquarie Univ, Macquarie Business Sch, Sydney, NSW, Australia
来源：
INTERNATIONAL JOURNAL OF ACCOUNTING | 2020年 / 55卷 / 03期
关键词：
Environment; social and governance performance; cost of debt; NONFINANCIAL DISCLOSURE; CORPORATE; RESPONSIBILITY; ACCRUALS; CORRUPTION; MANAGEMENT; QUALITY; ROLES; RISK;
D O I：
10.1142/S1094406020500146
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
This study examines the effect of environmental, social, and governance (ESG) performance on firms' cost of debt (COD). Based on a sample of 18,950 firm-year observations from 41 countries over the period of 2008-2015, we find a significant negative association between aggregate ESG performance and firms' COD. We also observe a significant negative association between the individual ESG performance factors (E, S, and G) and firms' COD. In addition, the negative association between aggregate/individual ESG performance and firms' COD is economically significant, ranging from 16.93% to 21.20% of median COD values. Finally, disclosure of ESG performance, stakeholder orientation, investor protection, control of corruption, and social progress have pronounced effects on the negative association between ESG performance and firms' COD. Taken together, our results suggest that ESG performance has a significant negative effect on firms' COD from an international perspective.
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页数：30
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