Lending Relationships of Firms for a Just Transition

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Saharti M., Saeed A., Chaudhry S. M., NASİR M. A.

European Financial Management, vol.31, no.3, pp.1195-1216, 2025 (SSCI, Scopus) identifier

  • Nəşrin Növü: Article / Article
  • Cild: 31 Say: 3
  • Nəşr tarixi: 2025
  • Doi nömrəsi: 10.1111/eufm.12535
  • jurnalın adı: European Financial Management
  • Jurnalın baxıldığı indekslər: Social Sciences Citation Index (SSCI), Scopus, International Bibliography of Social Sciences, ABI/INFORM, Business Source Elite, Business Source Premier, EconLit, vLex
  • Səhifə sayı: pp.1195-1216
  • Açar sözlər: ESG, financing arrangement, interest rate, just transition, sustainability
  • Açıq Arxiv Kolleksiyası: Məqalə
  • Adres: Bəli

Qısa məlumat

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.