We develop a double moral hazard model that predicts that the use of project finance increases with both the political risk of the country in which the project is located and the influence of the lender over this political risk exposure. In contrast, the use of project finance should decrease as...

Do banks charge an environmental premium when lending to publicly listed firms? Using CDP's unique and comprehensive database on carbon emissions, we study whether firms which choose to voluntarily disclose their carbon emissions enjoy more favorable lending conditions than their non-disclosing...

Following the 2008 financial crisis, policy makers considered regulations that restrict banks' activities which were motivated by concerns that banks use central bank borrowing, government guarantees, or subsidies to fund securities trading instead of lending to the real economy. Using a global...