Nguyen, Huyen; Uzonwanne, Sochima - Leibniz-Institut für Wirtschaftsforschung Halle - 2024
We investigate whether lenders employ sustainability pricing provisions to manage borrowers’ environmental risk. Using … unexpected negative environmental incidents of borrowers as exogenous shocks that reveal information on environmental risk, we … find that lenders manage borrowers’ environmental risk by conventional tools such as imposing higher interest rates …