Carbone, Sante; Giuzio, Margherita; Kapadia, Sujit; … - 2021
This paper explores how the need to transition to a low-carbon economy influences firm credit risk. It develops a novel … firms' credit risk: credit ratings and the market-implied distance-to-default. High emissions tend to be associated with … higher credit risk. But disclosing emissions and setting a forward-looking target to cut emissions are both associated with …