ESG Performance of Firms and the Structure of Loan Syndicates: Moderating Role of Relationship
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Huom! Tiedosto avautuu julkiseksi: 12.09.2027
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©2025 Wiley. This is the peer reviewed version of the following article: Saharti, M., Saeed, A., Chaudhry, S. M., & Ahmed, R. (2025). ESG Performance of Firms and the Structure of Loan Syndicates: Moderating Role of Relationship. European Financial Management, which has been published in final form at https://doi.org/10.1111/eufm.70019. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. This article may not be enhanced, enriched or otherwise transformed into a derivative work, without express permission from Wiley or by statutory rights under applicable legislation. Copyright notices must not be removed, obscured or modified. The article must be linked to Wiley’s version of record on Wiley Online Library and any embedding, framing or otherwise making available the article or pages thereof by third parties from platforms, services and websites other than Wiley Online Library must be prohibited.
This study examines the impact of firms' environmental, social and governance (ESG) performance on borrower–lender relationships within syndicated loans. Analyzing a global panel of contracts, we examine the impact of ESG scores on the number of lenders and the ownership of lead arrangers. Utilizing theories of information asymmetry, agency, relational lending, and resource dependence, our findings indicate that high ESG performance decreases lead bank retention, thus broadening syndicates and distributing risk. However, prior borrower–led relationships can reverse this effect, emphasizing that ESG and relational trust act as complementary governance channels, shaping modern global credit markets and capital allocation across sectors.
Emojulkaisu
ISBN
ISSN
1468-036X
1354-7798
1354-7798
1354-7798
1354-7798
Aihealue
Kausijulkaisu
European financial management
OKM-julkaisutyyppi
A1 Alkuperäisartikkeli tieteellisessä aikakauslehdessä (vertaisarvioitu)
