2021
DOI: 10.1016/j.jcorpfin.2021.102019
|View full text |Cite
|
Sign up to set email alerts
|

The impact of climate change on the cost of bank loans

Help me understand this report

Search citation statements

Order By: Relevance

Paper Sections

Select...
2
1
1

Citation Types

5
66
0

Year Published

2022
2022
2024
2024

Publication Types

Select...
9

Relationship

0
9

Authors

Journals

citations
Cited by 249 publications
(71 citation statements)
references
References 63 publications
5
66
0
Order By: Relevance
“…If green lending is a performance driver, it will motivate the banks to extend more credit to corporates with clean business models. This finding supports the notion of He et al, 2019 , Yang et al, 2021 and Javadi and Masum (2021) , who argued that banks can proactively support a zero-carbon transition in case the green loans support the performance. The lender profile dummy is also significant at positive, indicating that the banking spreads increase when the borrower profile is pro-climate.…”
Section: Resultssupporting
confidence: 86%
“…If green lending is a performance driver, it will motivate the banks to extend more credit to corporates with clean business models. This finding supports the notion of He et al, 2019 , Yang et al, 2021 and Javadi and Masum (2021) , who argued that banks can proactively support a zero-carbon transition in case the green loans support the performance. The lender profile dummy is also significant at positive, indicating that the banking spreads increase when the borrower profile is pro-climate.…”
Section: Resultssupporting
confidence: 86%
“…The pandemic outbreak usually shocks local firms owing to mobility restrictions, regional economic deteriorations, and shutdowns. Hence, the newly confirmed COVID-19 cases per capita in the province where a firm locates would be an adequate proxy for its pandemic exposure ( Ding et al, 2021 ), since firms’ headquarter locations are usually close to their operations and core business activities ( Javadi and Masum, 2021 ). Since most listed firms have a wide range of operating activities, we mainly use the newly confirmed cases per capita at the province level as the independent variable of interest.…”
Section: Methodsmentioning
confidence: 99%
“…Therefore, motivated by the two controversial arguments above, this paper aims to empirically investigate whether and how the COVID-19 pandemic affects the firm’s allocation strategy between real and financial assets. With a sample of Chinese A-share listed non-financial firms from 2020 Q1 to 2021 Q3, our baseline regression documents that corporate financial asset holdings shrink a lot under higher regional pandemic exposure, measured as the number of newly confirmed COVID-19 cases per capita in the firm’s headquartered province ( Ding et al, 2021 , Javadi and Masum, 2021 ). In terms of economic significance, on average, one newly confirmed COVID-19 case in 10,000 people in a quarter will result in an approximately 18% reduction in corporate financial asset holdings.…”
Section: Introductionmentioning
confidence: 99%
“…Anginer et al (2020) further confirm the adverse effect of environmental risk exposure on the cost of loan financing by showing that firms with environmental incidents suffer higher loan spreads, have a lower ability to access long‐term loans, and be imposed stricter restrictions in their loan contracts. Considering the regional diversity of environmental risk levels, Javadi and Masum (2021) prove that firms or their customers located in areas with high environmental risk exposure are charged higher costs for corporate loans. They also show that environmental risk exposure is mostly concentrated in long‐term loans of firms with lower credit ratings.…”
Section: Introductionmentioning
confidence: 99%