Do Banks Price ESG Performance? Regional Evidence From Europe and the United States
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Sohel, M. N. I., Iqbal, A., Ahmed, R., & Pappas, V. (2026). Do Banks Price ESG Performance? Regional Evidence From Europe and the United States. European Financial Management. https://doi.org/10.1111/eufm.70078
© 2026 The Author(s). European Financial Management published by John Wiley & Sons Ltd. This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.
Lataukset17
Pysyvä osoite
Kuvaus
This study examines whether corporate ESG performance affects syndicated loan spreads and whether the effect differs between Europe and the United States. Using LPC DealScan loans matched with Refinitiv ESG ratings for 2010–2023, we find that higher ESG scores are associated with lower loan spreads; a one-standard-deviation increase implies a 10.64-basis-point reduction. Environmental and social pillars drive the effect more strongly than governance. The negative ESG–spread relation is stronger in Europe and intensifies after the 2015 Paris Agreement, highlighting the roles of risk mitigation and institutional context in bank loan pricing.
Emojulkaisu
ISBN
ISSN
1468-036X
1354-7798
1354-7798
Aihealue
Kausijulkaisu
European financial management
OKM-julkaisutyyppi
A1 Alkuperäisartikkeli tieteellisessä aikakauslehdessä (vertaisarvioitu)